Should CEOs be allowed to make millions of dollars per year or should it be capped so that there's better wealth distribution?
2007-03-14 02:40:26 · 11 answers · asked by Luis 6 in Business & Finance ➔ Corporations
Absolutely not. Its really a horrible idea. I understrand many people get upset when they see a CEO getting 100 million stock option or something of the like, yet that is the price the market is willing to bear. If we started setting earning ceilings who would determine how much is the most a person is allowed to earn in a year?
Secondly price floors and price ceilings have generally not worked the most common price ceiling which is what you are proposing is rent control in cities like NYC and SF. they create a shortage of housing, substandard living conditions.
You can't say you are a free market in a capitalist socierty then restrict peoples pay. The easist thing to do is simply move the company overseas where that doesn't exsist. Then who loses the US in tax revenue.
I think things like backdating stock options should be illegal and CEO pay should be disclosed publically, but other than that allow the market and board of directors to determine what fair market value is for their CEOs.
2007-03-14 03:01:15 · answer #1 · answered by Jacques C 2 · 0⤊ 0⤋
Don't be stupid ...
Passing laws to cap CEO Salary levels will have NO EFFECT what-so-ever on "wealth distribution" (which, by the way, is a Politically Correct term meaning 'stealing from the rich and giving to the poor')
CEO Salary levels are controlled by Board of Directors and they in turn are governed by the Share Holders. If the Share Holder's don't like it they can sue (Conrad Black) or invest elsewhere.
Years ago in the UK we had top rates of Tax that exceeded 100% .. this led to all sorts of inventive ways to pay executive staff (eg. in wine, gold coins, share options, Company Cars, Company homes, boats, holidays, moving allowances, travel allowances etc etc)
2007-03-14 02:44:03 · answer #2 · answered by Steve B 7 · 0⤊ 1⤋
No. A CEO's salary is decided by the voting investors in a public corporation. As for wealth distribution, who decides who deserves the profits and what would they have done to earn a share.
2007-03-14 02:44:44 · answer #3 · answered by Amy V 4 · 0⤊ 0⤋
I like to hope so but in reality this is not so. Generally a CEO's pay, salary increment and bonuses are often align with the company's performance results. Unless its a public listed company whereby the shareholders can vote to have a cap.
2007-03-14 02:44:28 · answer #4 · answered by SGElite 7 · 0⤊ 0⤋
There should not be a government directed cap on CEO salaries. Shareholders can direct a cap if they get organized enough to do it. We operate on a system of capitalism not socialism.
2007-03-14 02:51:03 · answer #5 · answered by SA Writer 6 · 0⤊ 0⤋
Only liberals would want a salary cap because they dont think its fair that these CEO's and company's are prospering. They want the United States to be a socialist state
2007-03-14 02:46:35 · answer #6 · answered by Wizard of Ahhs 3 · 0⤊ 2⤋
It's amazing how many millions of dollars ceo and board of directors make plus stock options. This only hurts the stockholders by bringing their share down. Salary Cap - ABSOLUTELY.
2007-03-14 02:44:24 · answer #7 · answered by solotrovo 4 · 1⤊ 2⤋
i even have mixed thoughts approximately it. I attempt so annoying to maintain up at present events and actually make a factor to instruct myself, however the reality is that i'm no longer an economist and hence, no longer likely able to make a reliable judgment. On proper of that, the sorrowful actuality is that it form of does not count number how i think using fact they are going to do what they are going to do in spite of my humble opinion!!! i've got faith that confident, some thing desires to be finished so as that we don't fall right into a melancholy. inspite of the incontrovertible fact that, being that i'm an fairly liberal person, I actual have some severe misgivings approximately George Bush and his concepts-set to the economic equipment frequently.
2016-10-18 08:48:19 · answer #8 · answered by thedford 4 · 0⤊ 0⤋
Not really as this is a profit driven company as long he can bring good profit to the company, but there should be easy to understand figure to show his salary and benefits limit. and the shareholders have a choice to vote him out if he can't perform the job. cheers.
2007-03-14 02:48:08 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Yea, where do people get off thinking that this is a free country? People should be forced to submit to the will of the majority and not live by their own decisions and/or free will.
2007-03-14 02:57:51 · answer #10 · answered by Anonymous · 0⤊ 0⤋