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Should there be a maximum limit that businesses can pay their CEO?

Results so far:

Yes
48% 271 votes Total: 565 votes
No
52% 294 votes

It is "beyond the beyond" that corporate CEO's can get 500 to 1000 times the pay of the average employee of the company, business or corporation. A generation ago, compensation for CEO's or company presidents settled for 5 to 25 times the average pay, a fraction of what it is today. Add insult to injury, it is a slap in the face to many extremely hard working, loyal employees who face every day on the verge of poverty or out right loss of employment, and economic oblivion, altogether, while their corporate CEO is guaranteed a "platinum" parachute worth hundreds of millions of dollars in severance and retirement pay. I personally do not know what the end game this continued abuse will lead to, but I can imagine it's not any prettier than a full-scale great depression, or a regional war that becomes global, maybe nuclear.

If it were up to me, I would forcibly restructure all American companies like the Japanese model with regard to CEO pay. The Japanese cap their CEO pay to no greater than seven (7) times that of the beginning or lowest pay level of the company. I would use six levels of pay. The following is how it would work:

Pay level one, the base reference annual pay, would be for company supporting personnel such as custodians, general secretaries, clerks, etc. Level two would be the "entry level" for a college educated field of major study related to the position. For example: this would be sales and marketing, computer related, or professional sciences such as engineering. Profession secretaries educated in the related field would be at this level. Level three would be the first promotion of level two employees, and the first level supervisors. Level four would be the final promotion for non-supervisory employees and for middle management supervisors. Level five would be a promotion into upper management (which also includes all board of trustee positions). Level six, the final level, would be held by the CEO, and/or president (including any vice president), or company head which may be titled Director, Governor, or Chairman.

Level one defines a base annual reference pay from which the others are based. Each subsequent annual pay level is equivalent to the preceding level plus the base pay. In others words, level two is twice level one. Level three is three times level one. And so on till level six, which is six time level one.

Now, for example, a reasonable annual base level in today's dollars might be $25,000 per year.


Below are the top articles rated and ranked by Helium members on:

Should there be a maximum limit that businesses can pay their CEO?

Yes
  • 1 of 20

    by Lou Farris

    Constitutionally, all Americans are allowed to freely prusue happiness. That free right is infringedupon when one's p...read more

  • 2 of 20

    by J J Debar

    Of course there should be a maximum on CEO pay and it should be equitable and reasonable, in accordance with incomes ...read more

No
  • 1 of 31

    by Alex Link

    The debate surrounding the drastic differences in salaries between CEO's and the lowest paid employees of companies h...read more

  • 2 of 31

    by Hal Lillywhite

    There should be no hard limit on what a CEO can be paid, but there should be a way for stockholders to impose reasona...read more

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