Economic Solution

txswinner

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Public traded corporations are out of hand. Congress needs to step in and stop the executive managers from stealing what is rightfully the stockholders dividends. How?<br /><br />Congress should put a salary cap on all Managers that no one in company can make more than 100 times the lowest paid employee or temporary employee income based on average weekly wage.<br /><br />This means if company pays housekeeping person $20,000 then CEO can make $2,000,000. This would include all options. All the profit should be put back into the company or dividends or heaven forbid raise workers salary.<br /><br />Anyone have any thoughts, realize would require some details worked out, but NOT by the crooks.
 

wilkin250r

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Feb 9, 2003
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Re: Economic Solution

I believe free market and [nearly] unrestricted capitalism are what made this country great. If a CEO is sucessful enough to make 10 million, then so be it.
 

txswinner

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Re: Economic Solution

The key is CEO does not earn that money, he is an employee and he steals it from the dividends to be paid investors. This is why the stock market is not reflective of the success of the company. We just saw how unfree our markets are with the gouging by OIL Companies.
 

jtexas

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Re: Economic Solution

There is precedent;<br />* Income tax penalties for top-heavy benefit plans.<br />* Minimum wage laws.<br />* NFL salary caps.<br /><br />Why not a maximum wage?<br /><br />Cause it's just silly, is why. Stealing? Crooks? <br /><br />Good one, txs, LOL! :D
 

TELMANMN

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Re: Economic Solution

CEO sucessful? How do you figure it? They give them a high salary, stock options and then they lay off employee's so they can get the options. At the same time they get rid of pension's for everyone else then keep them for themselves. They then drive the compnay into the ground, declare bankruptcy, have the government take over any pensions that are left from the old employees who retired and have I said the CEO's already got rid of their options?<br /> And all this for two more years of education(MBA). <br /> I just wish I could of been as scummy but then again I am just a agnostic who believe's "do unto other's as they would do to your".
 

tommays

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Re: Economic Solution

makeing money the old honest way buy running a good company that makes something people will BUY seems to take to long now<br /><br />these days it seems to much more inportant to get a short term stock price gain than a long term plan that grows a good solid company<br /><br /><br />tommays
 

CalicoKid

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Re: Economic Solution

Those types of corporations that have the disproportionately high paid executives are hurting themselves and inturn their employees. Look at GM, the major airlines... Let them run their businesses into the ground anyway they see fit, unless they have their hands out for corporate welfare. In that case they ought to have to comply with some guidelines that benefit the employees and the business itself, not just the CEOs and major stockholders. These people are fat leaches on the working class taxpayer.
 

POINTER94

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Re: Economic Solution

tommays,<br /><br />very good point. Mr CEO what have you done for me ...... today?
 

PW2

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Re: Economic Solution

The Board of Directors set the compensation package for the CEO.<br /><br />They answer to the shareholders. There are a few big shareholders that are starting to exert their influence on Boards, but there needs to be more of that. Compensation packages are clearly documented in the SEC filings<br /><br />The problem with your theory is that usually a really good CEO is worth it to stockholders, virtually whatever he is paid, and you can't afford to have a bad one, even if he works for free.
 

mattttt25

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Re: Economic Solution

i don't have laws to quote, but i'm pretty certain when a company goes public, they follow certain rules, whether they are set by law or by their filings. regardless, it's still a private company (or rather a private company with public backing). your complaint sounds like one from a disgruntled stock holder. i feel for you, but really can't side with your view. the ceo earns the big bucks because he's at the top. in my mind, he earns whatever he can get, it's that simple.
 

jtexas

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Re: Economic Solution

Originally posted by CalicoKid:<br />Those types of corporations that have the disproportionately high paid executives are hurting themselves and inturn their employees. Look at GM, the major airlines... <br />
Here's how airline CEO's rank in total compensation, out of the 500 top paid CEO's, plus their pay cuts in 2004: <br /><br />-------2004 rank --- change from 2003 (total compensation)<br />American....482...-85% <br />Continental.447...-79% <br />Delta.......485...-82% <br />Southwest...470.....0% <br />Northwest...484...-56% <br />U.S. Airways not in top 500<br /><br />GM.........141....+178%<br /><br />source: Forbes.com ranking of 500 top paid ceo's
 

rogerwa

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Re: Economic Solution

PW nailed it.. I just don't understand the CEo envy thing.. Its not like they set their own wages. Whether public or private they always someone to answer to (shareholder or owner). <br /><br />I'm watching the MNF game right now and it has me thinking, maybe they should have a rule about the most expensive player only making a set factor more than the guy who cuts the grass.
 

JB

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Re: Economic Solution

Demonizing CEOs because of the actions of a very few doesn't make sense.<br /><br />The superstars in most fields earn very high salaries. If they don't meet the owners' objectives, they hit the street.<br /><br />It is not something that is the government's business, except that the leftists want to find a way (taxes) to punish the winners of the "rat race". Even with a conservative administration and congress a guy who makes a taxable million pays about $350,000 to the IRS. Three hundred and fifty THOUSAND dollars. That doesn't seem like giving the "richest" Americans a fair break to me.
 

QC

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Re: Economic Solution

Other than the legitimate concern about paying for short term share price growth vs. long term stability, I have no concern in this area whatsoever.<br /><br />txs,<br /><br />Where does your hatred for CEOs come from? These guys are on the edge of losing their jobs everyday. Most of them were agressively recruited from other companies. They are literally bid up to come join newer and riskier opportunties.<br /><br />I got beat up in 2000 and 2001 too. Who do I blame? Me.
 

KilroyJC

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Re: Economic Solution

Well, if you want wage caps on people, how 'bout the Hollywood crowd? They get an awful lot of money for very little value returned. . .
 

dolluper

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Re: Economic Solution

The stock market is just leagalised gambling,company "A" revenues up, profits up , stock goes down =Profit sharing by large stock holders Company "B" revenues down,profits down,stock goes up = greed speculation {raising cash flow}<br />Not a good gambler stay out of the stock market as it will bite most<br />20% gain sell<br />10% loss sell<br />You always make 10% this way<br />Or bite the bullet and hope for the best
 

OLDSPUD

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Re: Economic Solution

tswin, have you ever taken an econ class, this idea is lunacy.<br />If socialism is what you want, go live in a socialist country.<br />This country was built on a free market system, look at gas prices, they have gone down, why? Not because the Gov't interviened.<br /><br />Spud
 

txswinner

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Re: Economic Solution

Spud, Yes actually have taken a few Eco classes which by the way are liberal arts not bus. or science. Might ask you to read current events. Note CEO of oil companies on carpet before Congress and prices fell. If shortage of oil and high prices not conspired by oil companies how come they have increased profits 3 fold. Not free market, it is monopolized by Exxon-Mobil and BP other players are permitted for appearance only. Wake up smell the roses.<br /><br />And France, we all dispise France (Yours truly as well, although not for Iraq) but they did not want to invade Iraq for free trade reasons yet many hate them for it. Remember they were trading with Iraq and Exxon could not control the oil. Yes Roses.
 
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