Restraining excuberant pay packets

Discussion in 'Politics' started by yaari, Oct 26, 2009.

  1. yaari


    Here's my idea about how we can put a check on exuberant pay packets and ensure a fare wage for ordinary workers.

    Suppose a rule is implemented such that for every company

    1. The difference in the highest total compensation paid out to an employee is no greater than say 10 times ( or any other relative metric ) the compensation paid out to the lowest paid employee in that company. This would ensure that workers get a fare wage.

    This is just an idea, ... I would like your thoughts on it.
  2. logikos


    I don't like that idea because if the lowest paid employee is a custodian at 20K a year, to pay an highly valued employee over 200K a year, you will have to pay the custodian more. You are teaching the custodian that his pay increases are not related to his performance, but the performance of somebody else.

    If regulation of compensation has to be implemented (which I don't think it does, but that is besides the point), maybe executive bonuses should be based on revenue ONLY, not slashing expenses, such as layoffs or cuts in training budgets, etc. This way, during lean years, everybody has to bear the brunt, from the top down, and more people would keep their jobs.