Quote:
Originally Posted by Russ_Boston
When it comes to executive pay - we all have the power to limit it if you wish. For example if you feel that Comcast is not a very well run organization and the CEO makes too much money then don't buy Comcast. If you think that the CEO of Dardin restaurants makes too much then don't eat at Olive Garden. If you do buy these products, or eat at these restaurants etc. then the organization itself (and board and shareholders) has the choice as to how much to pay its executives.
Now corporations that expect a government payout and still want to pay their executives like it did during the boom times... that's a different story. I think that if they share in the success during the good times that they need to feel the pain during the bad times. You get paid for results.
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I do not totally disagree with your or cologals posts, for different reasons on each.
In cologals case I believe that there will always be those that set the income for others and those that feel they deserve more of the piece of the pie. All people, at one time or another, have worked on the deserving end of the equation. Those that have risen to the level of setting the wages have to answer to their superiors (the board or shareholders) for keeping labor costs down. Not their own wages of course! It is unfair, but unchangeable! The governments role is not to try to "micromanage the business" as Sowells' article said. It is up to the corporate board or the shareholders to decide who gets what. You know that, cologal.
Russ, I agree with your point of how we all can affect businesses with our purchasing power. Look what happened when we cut back on the purchase of gasoline! I also agree that CEO s should share the pain, but at the shareholders and corporate boards whip, not the governments. As Thomas Sowell said "We have just seen one of the biggest "free home demonstrations" of what happens in an economy when politicians tell businesses what decisions to make."
We must be ever careful of the powers that we grant government less they turn those powers on us.