Should there be a law that makes the CEOs salary cap off until the salaries rise for the other employees?
Free market vs. Social Conscience
No wrong answers.
2007-02-13 07:18:51 · 15 answers · asked by Year of the Monkey 5 in Politics & Government ➔ Law & Ethics
The shareholders should be the ones to make this decision, not the government. The CEO doesn't pick what his salary will be; the Board of Directors do. And they report to the shareholders of the company (the people that vote them onto the board).
2007-02-13 07:43:01 · answer #1 · answered by Mutt 7 · 0⤊ 0⤋
50 years ago CEO's made 80 times what the average employee was paid. Today its 400 times. The boss makes in one day what it takes the average employee in his company a year to earn.
As far as I know, there is no legal constraint on this inequity, nor do I personally see how one could be implemented. The CEO reports to share holders and the workers report to the CEO. If the shareholders think the CEO is worth $12 million a year and and the CEO says that line workers are worth $7.50/hour then that's the way its going to be.
About the only tactic that will be effective in getting workers paid and treated properly are labor unions. But no one wants to join a union because everyone is in "management" even those earning minimum wage.
2007-02-13 07:29:54 · answer #2 · answered by fredrick z 5 · 1⤊ 0⤋
"legal proportion"? Anyway, no. Market forces dictate. If a Board of Directors feel it's in a company's and the stockholder's best interest to pay a CEO a cool mil a year, who's to say they're wrong. The worker's interests are protected by the government, i.e. minimum wage, mandatory breaks, etc. Further, the workers usually have the right to unionize, which is a counter-balancing force.
2007-02-13 07:27:10 · answer #3 · answered by obamaforprez 2 · 2⤊ 0⤋
As much as I disagree with huge salaries for CEO's, the board voted on it. The board is suppose to know the company needs better than the average Joe on the street. Maybe that is how they got the CEO to come over to their company, promises of big bucks. We live in a free market economy, so they can make whatever. Do I like it, hell no. Does it always work...nope again. Hope that helps.
2007-02-13 07:24:20 · answer #4 · answered by GA-Seagull 4 · 1⤊ 0⤋
The government should not be involved in salary capping. Investors should decide whether or not a CEO should be getting tremendous sums of money for not working very hard.
The government SHOULD, however, investigate rising CEO pay in those industries that provide business and public necessity products and services, like energy, if they claim that their bottom line is being hurt by random influences, like hurricanes, floods, the war in Iraq, etc. Energy is one of those goods that needs to be regulated strongly to ensure that everyone gets a piece as the ultimate purpose of government is to regulate scarce resources so that the elites do not have an unfair advantage.
2007-02-13 07:32:21 · answer #5 · answered by darkvelvetrain 7 · 1⤊ 0⤋
Its true, the government should stay out of it - but the people should unite. Exxon gave their CEO a gift of $400 million.
They are an oil company, can you imagine how many chemists, chemical engineers, etc. they could hire for that amount, and create the latest and greatest product?
Its a poor use of money, people should band together and boycott them and not invest in Exxon stock.
This is where our individualism works against us - you'll never get millions of people to agree on a boycott. But it is possible there may be some legal recourse - usually bylaws of a company say they will maximize profit for the stockholders. If you can prove this act did not keep with that objective, you could possibly sue (wouldn't bet on winning though..).
2007-02-13 07:28:24 · answer #6 · answered by Anonymous · 0⤊ 2⤋
It's up to the board of directors of that company as to what they will pay the CEO, or if its a company the CEO founded they can pay themselves what they like. They decide (free market).
2007-02-13 07:30:21 · answer #7 · answered by Anonymous · 1⤊ 0⤋
This is one question that can answer itself? Ethics have left the building when it comes to stealing company assets and investors hard earned money.No morals are apparent in business and government in this day and age.I read where CEO's are getting somewhere like 140 times the average workers compensation? and they tell you that minimum wage is bad ,wrong, causes prices to rise?7.00 bucks versus millions in CEO's payout?? Immoral!absolutely! as for a ethics question? After you have more than you can spend in a lifetime,bigger and better and more would seem to lose its appeal? but evidently it must a be a disease not easily cured? our society is out of balance as to distribution of wealth,greed,and a conscience to make changes for the good of all.
2007-02-13 07:35:10 · answer #8 · answered by richard c 4 · 0⤊ 1⤋
"Social Conscience" is the property and responsibility of the people, not the government.
The people must be the instrument of social change. Expecting the government to do it for you simply means you are willing to abdicate further social responsibility to the State.
It may take longer than suits you, but the "Free Market" will adjust to meet "Social Conscience" so long as the people expend the effort necessary to make it so.
2007-02-13 07:34:21 · answer #9 · answered by a_man_could_stand 6 · 1⤊ 0⤋
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2016-12-04 03:29:01 · answer #10 · answered by ? 4 · 0⤊ 0⤋