Wednesday, January 28, 2009
Corporate CEO compensation
CEO's in some various industries have been receiving huge bonuses and salaries. Many people in America look at these and say "That is outrageous". Could be, but you know what -it's none of our business. Corporations are publicly held companies owned by stockholders and have a Board of Directors which determines executive compensation. If the stockholders feel the compensation is excessive they have the power to change it. With our free market system, if you feel a certain corporation is spending too much on Executive compensation, you can go elsewhere with your business. A lot of people feel the government should step in and limit executive compensation. This is the old class warfare argument that Democrats are so good at keeping up front and right in your face. "Those horrible, evil, corrupt corporate types" (yes, there are some, just like there are some embezzlers in your local Covenience Store). Please tell me how the government limiting executive pay is going to improve your life. Did you ever hear of incrementalism? The government starts with a small regulation on Executive compensation, then a few years later they think "you know those Middle Management types seem to be overpaid, maybe we should regulate what they earn. How long will it be before they are telling you what you can earn? If you think that won't happen, you've been living in a cave for the past 40 years!