An awful lot of Americans are skeptical about the value of their nation’s corporate executives.
To paraphrase Marx, CEOs love to reap where they never sowed.
Economist Dr. Richard Wolff has revealed many times the fraud perpetrated on workers in Corporations when a small fraction of a percent arrange to keep the Lion's Share of the Profits for no other Reason than that they can.
If Congress would just stop allowing business to deduct executive pay as a business expense, that would go a long way to solving the problem.
Should they still be allowed to deduct for movie stars and sports figures? Or how about someone who has their own business?
What role does it play in steering people of the company and its trajectory?
This is an easily metricked item.
But it is treated like this amorphous, ambiguous nefarious, unquantifiable magic that only the blowhards and bullies understand.
Obviously, then, you should obey, and not question.
Kneel and blow, beggars.
And no, none of this should be tax exempt or deducted from the company expense.
The Koch brothers have their own business (Koch industries is privately held).... Clearly laws can be tailored, put a cap on allowable deductions, say $!M or a multiple of the average employee pay or a multiple of the minimum employee pay. Your argument seems to mimic the arguments for killing the inheritance tax. Like gee-wiz the 'death tax' will kill the family farm. There are always reasonable work-arounds.
FDR suggested a maximum income during WW II:
FDR proposed many stupid ideas, like packing the Court, putting the Japanese in concentration camps, dropping the A Bomb, trusting “Uncle Joe”… hardly a sterling recommendation for an idea.
Ben & Jerry’s tried putting in a maximum wage. They had to get rid of it the first time they tried to hire a CFO. They couldn’t find someone with experience who was willing to work as CFO (and take on the liability) for (I believe) 4x the average worker.
Put in wage caps and people will either:
a) go somewhere else where the can earn more money; or,
b) work less.
Aren’t you assuming here that the average wage is realistic? In a maximum wage scenario, raising the average wage for the lower paid workers also raises the the CFO wage. And by the way, CFOs of corporations don’t take on personal liability of any of their decisions. Limited liability and all that? Not unless they commit fraud (a crime) will they take the hit for bad business decisions. And in the world we’ve created today, they don’t even go to jail when they commit fraud!
Kamayok - Under Federal law, the CEO and the CFO are required to attest to the validity of public filings (10-Ks and DEF14A’s) and are subject to criminal liability. It is an exception to the normally limited liability that a corporation provide.
As far as the average wage being “realistic”, that depends on your definition of “realistic”. On one hand, you have automation steadily taking over low-value-added jobs (look at an Amazon warehouse, or the latest robot pizza maker, or self-checkout at the supermarket). On the other hand, in an increasingly globalized economy, the most talented, whether sports figures, artists or managers (and yes, good management is a talent) see larger and larger rewards as their reach expands.
There is a minimum wage that doesn’t work very well simply because there is not a maximum wage set for the massive greed at the top to control greed. A cap should be placed on the what any slave drivers can manipulate out of what is actually earned by the enslaved/screwed producing workers. A CEO does not actually earn but a very small portion of what they rip off as income.