4 ms·
I don't know how workable it would be, but I always liked the idea of management's base pay being the average of everyone that worked for them. Any bonuses wou
by Kadrith 16y ago
I don't know how workable it would be, but I always liked the idea of management's base pay being the average of everyone that worked for them. Any bonuses would have to be a multiple of that base pay; to include stock.
This would ensure that the base salary only goes up if the average wage goes up and clearly define the bonuses. At least for those where the bonuses are published; I'm thinking SEC filings and the like.
In practice it probably wouldn't change much though.
- tptacek 16y agoWhy do you care what management makes? They aren't your peers. Totally different job.
- kscaldef 16y agoBecause it gives you insight into what your company believes matters and contributes value to the company.
- tptacek 16y agoThat's all well and good, but managers often have a different incentive structure than normal employees; a manager might command a significantly higher salary, but be out on her ass if her group doesn't meet business performance targets that depend on every member of her group and her own business judgement. An extremely common example in services companies: managers are often responsible for their region's number.
- Kadrith 16y agoSome of them are, I report to the CIO directly and sit on the Corporate Compliance board of the organization. I care because I think something like that would make more organizations accountable for being reasonable with executive and management pay.