AAA what would happen to the competition of major league baseball if every team was forced to have a maximum yearly contract of only $100,000? I will tell you what happens. Every single major league player would literally flee from the scene and go wherever they could receive higher salaries. This means leaving the country. The same thing would happen if the US mandated that CEO's could only be paid a certain limit. Every single great business mind would flee the country and work in other countries where countries actually allow their businesses to pay for top talent. Does not anyone think of the consquences of limiting CEO pay?? I know the jealousy meter goes off the roof but you have a choice. You can be jealous or you can lose every single successful businessman in the country and let the country turn to shit. Imagine if every single great business mind just left the country.
C'mon now folks, we are traders, professionals at that. Who among us wants to "catch a falling knife?" Give MORE money to the auto companies to waste it exactly the way they have wasted gabillions of $$ and 90% original market share so far? Not until the have convinced Congress and the public that they will change, sacrifice their plumb contracts and lower costs/improve quality. ALSO that they mean business this time. And with LOTS of strings attached!
If that argument was correct than minor league games and teams would be far more popular than the actual major league teams. To bad they aren't.
I saw first hand what happened when AT&T "modernized" its executive pay in the late 80s and hired professional guns from the market, people who didn't know anything about telecom and couldn't care less about the company. I was there. A terrible infighting ensued, execs focused only on themselves and each other and forgot the competition, let alone the customers and the employees. Consequently, the downfall of the company accelerated. It's like "forget the police, they are civil servants (sort of), let's get the Mafia to protect my family." Fouggettaboutit! There deals with the devil have their own laws to follow and bring about their own, different, disasters. That's why, on average, family-owned businesses do better than large corporations in essential business metrics: market share, quality, cost control, customer loyalty and employee satisfaction. Remember Apple - when they fired Steve Jobs essentially because he loved the company so much that he was deemed to be too close to make objective decisions? It went straight down until they brought him back to re-create one of the best companies ever. Same story with Microsoft, etc etc. Oh well.
I think it is widely accepted that hiring people that have no appreciation or care for the business they partake in is a bad idea. You don't address the issue of limiting CEO pay, you are just merely saying do something good instead of doing something bad. Limiting CEO pay in the US would drive all the talent out of the country. When i say talent i mean people who have the abilities of having a strong positive impact on the company. AT&T thought they were hiring talent but they weren't. Talent is a passionate ability of being extremely good at something. You need to stay on the topic of the consequences of limiting CEO pay and not tell me to do something good instead of bad because you are not adding anything of value to the debate besides grade school logic.
I think that spectators are sucked away by the artificial allure of the "mega players" of the majors. But if they (mega players=mega salaries) didn't exist (original hypothesis) then much more customer loyalty across a fundamentally more uniform field would follow. I think. Of course, who knows? Imaginary questions obtain imaginary answers, right?
Truth is, I don't know. But I believe that huge salaries change the person, make them almost like a monster who needs to devour everyone else to satisfy his lust for money and power. That cannot be good for business.
Quit being an idiot. The fans do not want to watch pitchers that can only throw 80 mph and the fans do not want to watch hitters that can barely hit it out of the infield. The fans want to see the best in the world. This country needs now more than ever the best business minds in the world.
Have you ever heard of looking at someones past performances and results? Of course knowing this pointless debate by now you would argue that adding another million to a CEO who is already paid 20 million would definitely make him go insane with all the money and power even though he has been successful for the last 30 years. Hilarious.