[FoRK] Why they get paid the big bucks...
sdw at lig.net
Thu Jun 19 11:07:22 PDT 2008
Jeff Bone wrote:
> Ha! I love it! Economists using the looters' logic (the part used to
> justify progressive tax structures) to explain why the income
> distribution is what it is!
Looter's logic? They are just saying that what the marginal tax rate is
doesn't matter when corporations are competing for, and incenting top
leaders / performers because the bidders will just compensate. I
suppose you are referring to the overall topic of trying to address high
CEO pay in public corporations. How big of an issue that is depends on
a number of factors. I don't really have a problem with it in most
cases. It is fine when it is a founder, or someone who somehow is worth
it (skill, connections, etc.), or when the competitive pool of
candidates requires it. It is bad when it is part of a corporate
looting operation that is killing the corporation and stealing from
shareholders and employees without value.
I like the pressure that excessive executive funding, along with other
drains, have that create a negative economy of scale that makes room for
smaller, more innovative and healthy firms to survive, compete, and
overtake aged behemoths.
Diminishing marginal utility is what I was describing with marginal
discretionary income ratios. You aren't denying that the effect , i.e.
sub-linearity of utility above middle-class subsistence requirements,
exists are you?
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