5 ms·

But that wouldn't affect the ratio of employee wage to executive wage. Lobbying/bribing would increase the company's total profit.

• randyrand 9y ago
  Executives are often paid (or given raises) in-part or in-whole relative to the companies total profit. Typical employees are not.
  • itaris 9y ago
    Exactly, capitalism working as intended.
    • zo1 9y ago
      You say that as if it's a bad thing. A company is not a communist-commune where everyone owns the "commune" collectively. The executives' compensation is based on the company performance because they probably own shares and because their specific "function" is to make the company perform better. An employee's function, on the other hand, is to do their "task". They get paid to do it. Now, you could argue that if they do their task well, then the company does well as well, but that's not the way the relationship is presented. It's more transactional in nature, because it's easy to quantify the value being exchanged.