SEC proposes to cap CEO's pay

[hillbilly beef man]

Her e is a link to the article. http://gawker.com/whats-an-acceptable-r ... 9@neetzanz.

I am wondering what people think about this. I am torn on what to think. On one hand limiting how much people can earn has a definite smell of communism, and I usually do not like government oversight in any form. On the other hand I do not believe that CEO's should be getting raises and making 10s to 100s of millions a year when they are cutting employees pay and benefits, as has been the general norm. Case in point, I worked for a publicly traded company (still do, just different one) that cut out health insurance for all retirees. They sent all of us a letter that told us that this was necessary to keep the company profitable and that this move would save the company 12 million a year. The next week they announced that the CEO was getting a 14 million dollar a year raise. I wonder where they got the money to give him a raise?

 

[Anonymous]

It will only stifle what little bit of drive CEOs have left. Right now the only thing driving them is profit sharing and a paycheck. Take that out of the equation and I don't think that innovations and drive to move forward will continue. Let it run its course and hopefully the investors and board sort it out the way it should be.

 

[HDRider]

As opposed to the government capping it, which I do not think will happen, I believe shareholders should vote on C level compensation (CEO, CFO, COO, etc.).

I have worked in situations that let me speak with authority, and to say , that C level compensation set by the board of directors is a cozy little love nest.

Some countries have that. It is sometimes called say-on-pay.
http://en.wikipedia.org/wiki/Say_on_pay

 

[TexasBred]

As opposed to the government capping it, which I do not think will happen, I believe shareholders should vote on C level compensation (CEO, CFO, COO, etc.).

I have worked in situations that let me speak with authority, and to say , that C level compensation set by the board of directors is a cozy little love nest.

Some countries have that. It is sometimes called say-on-pay.
http://en.wikipedia.org/wiki/Say_on_pay

To many boards or little more than "boards of approval" as apposed to "boards of directors". They simply rubber stamp everything presented for fear of not getting their own director's fees. Check the minutes of the board meetings and you'll have to search far and wide to find a single "nay" vote on anything.

 

[3waycross]

As opposed to the government capping it, which I do not think will happen, I believe shareholders should vote on C level compensation (CEO, CFO, COO, etc.).

I have worked in situations that let me speak with authority, and to say , that C level compensation set by the board of directors is a cozy little love nest.

Some countries have that. It is sometimes called say-on-pay.
http://en.wikipedia.org/wiki/Say_on_pay

To many boards or little more than "boards of approval" as apposed to "boards of directors". They simply rubber stamp everything presented for fear of not getting their own director's fees. Check the minutes of the board meetings and you'll have to search far and wide to find a single "nay" vote on anything.

I think it's called "Enlightened Self interest". There seems to be quite a bit of that going around these days.

 

[Craig Miller]

Im against capping anybodys pay. Its like saying that my pay should be equal to the ceo pay cause its not fair that he makes more. Well guess what. Lifes not fair. Work hard and kiss enough butts and you can have his job and make his pay.

 

[john250]

How will this affect Nick Saban?

 

[HDRider]

Im against capping anybodys pay. Its like saying that my pay should be equal to the ceo pay cause its not fair that he makes more. Well guess what. Lifes not fair. Work hard and kiss enough butts and you can have his job and make his pay.

All our pay is capped by someone.

 

[CottageFarm]

Would it be acceptable for the SEC (or any other branch of gov't) to dictate a cap on the salaries of the Directors?
How about mid level employees? Entry level employees? How about shareholder earnings?
Kind of a slippery slope, huh?

 

[ChrisB]

How will this affect Nick Saban?

Well done John! :lol:

 

[Craig Miller]

Im against capping anybodys pay. Its like saying that my pay should be equal to the ceo pay cause its not fair that he makes more. Well guess what. Lifes not fair. Work hard and kiss enough butts and you can have his job and make his pay.

All our pay is capped by someone.

Not by the government though.

Would it be acceptable for the SEC (or any other branch of gov't) to dictate a cap on the salaries of the Directors?
How about mid level employees? Entry level employees? How about shareholder earnings?
Kind of a slippery slope, huh?

Sure is

 

[HOSS]

While I understand the sentiment about overpaid CEO's I try to put it in perspective. At a former company our CEO got a 350k raise. The employee union was pitching a fit about his raise while they didn't get everything they had wanted in the last contract negotiation. They demanded that his raise be taken away and evenly distributed out among the employees. I ran a little math and it came to roughly 12.00 per employee for the year. They spent countless hours worrying, complaining and being angry at management over $12.00. Yep CEO's make huge money but most of the companies are so big that even if they took 100% of his pay and spread it out over each employee it would barely pay for a meal at the Outback or a pair of shoes. CEO pay is a drop in the bucket compared to the overall budget.

 

[TexasBred]

Im against capping anybodys pay. Its like saying that my pay should be equal to the ceo pay cause its not fair that he makes more. Well guess what. Lifes not fair. Work hard and kiss enough butts and you can have his job and make his pay.

All our pay is capped by someone.

Usually by "us" with our level of production and our worth to the company.