Ravenwood - 09/16/02 01:57 PM
According to the LA Times, executive pay is a big problem. Lawmakers may even want to pass legislation 'discouraging' highly paid executives.
This is reminiscent of what Ben and Jerry's tried to do. When Ben and Jerry's was founded, they tried limiting CEO pay to 5 times the lowest paid worker. It was a noble effort, but they quickly discovered that attracting top talent for CEO was going to require changing that policy. Lawmakers may argue that regulating top pay for CEOs will affect companies equally, but in the global marketplace, this just isn't true. Instead it becomes yet another hurdle for US companies to overcome. It would be similar to MLB putting a salary cap only on US teams, while allowing non-US teams to freely compete for top talent.
It's sad that the same Congress that bitches about trade deficits continues to support anti-capitalist, anti-competitive penalties for US companies.
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