[kach22i]

Originally Posted by seafeye

We’ve all heard that in the 60’s a typical CEO made about 5 times more than the average employee. Today that number is about 250-350 times.

I can do the math and I know that if I took my CEO’s salary and divided it up equally between each employee, it would only equal $250.

In 40 years is the salary of a typical CEO going to be 500-1000 times that of an average employee? Will that be reasonable? When is enough, enough? Should a CEO make more in one day than an employee does all year?
Should a leaders salary be based on share price? Profits? Revenue?

I only ask because my CEO is making a killing and managers are getting huge bonuses all the while we are losing revenue and market share. All profits are going to stock buybacks, not buying new machinery.

https://www.vox.com/2018/8/15/17683022/elizabeth-warren-accountable-capitalism-corporations

The shareholder value era has pretty clearly brought about an explosion in inequality in the United States. It succeeded, for starters, in greatly increasing the value of shares of stock in the English-speaking countries where Friedman’s doctrine has been most influential.

You can see this in the evolution of a ratio known as Tobin’s Q — the value of all the shares of stock outstanding divided by the book value of everything publicly traded companies own. .................

Warren’s plan is not like that. If imposing stakeholder responsibilities on businesses and requiring many of the seats at the biggest firms to be elected by workers pushed the S&P 500’s Q ratio down to German levels (which is probably a high estimate since German codetermination rules are somewhat tougher than her proposal), share prices could fall by 25 percent. For the vast majority of people who earn the majority of their income by working for wages, cheaper stock would be offset by higher pay and more rights at work.

But for billionaires with huge stock holdings — and for CEOs with compensation packages tied to share price performance — it would be a disaster. If they thought the idea stood a snowball’s chance in hell of happening, rich people would denounce it to anyone who would listen — and since executives and major investors enjoy privileged access to the media, their denunciations would be heard....................

Studies from Germany’s experience with codetermination indicate that it leads to less short-termism in corporate decision-making and much higher levels of pay equality, while other studies demonstrate positive results on productivity and innovation.

It's hard to talk about a topic like this without it getting political.