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Business

Say on Pay

Who should decide executive compensation?  The board of directors?  The shareholders?  The government?  Society?

The general public has developed some pretty strong feelings on the subject in the past few months as investment portfolios fall, layoffs occur, and information on multi-million dollar compensation packages comes to light.  The public may have a short attention span, but companies need to ponder the long-term implications of the pent-up frustration and outrage.

When good times were rolling, it was easier to ignore the fact that an executive was making 344 times the pay of an average employee.  For a minimum-wage employee, make that 866 times as much.  And then there's the hedge or equity fund manager whose $588 million is more than 19,000 times as much as a typical US worker earned!

Could the questions asked in the first paragraph be part of rebooting a "crashed capitalist system" and emerging with a more social and sustainable capitalism?


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