4 ms·

> just capping executive pay based on the lowest wages of the labor they pay. I really don’t see a problem with this, executives are employees too. Make their

> just capping executive pay based on the lowest wages of the labor they pay. I really don’t see a problem with this, executives are employees too. Make their incentives align

chgs 2y ago
Lowest paid employees get outsourced. We already see it in most companies - they buy in cleaning services rather than employing the cleaners for example.
- Aerroon 2y ago
  Furthermore, CEO responsibility will not be scaled if their pay is capped. People keep citing the "CEOs earn X times more than they used to", but they conveniently leave out the this only applies to a tiny fraction of companies and that these companies have scaled up by a very large amount. Walmart has 2.1 million employees. No company 50 years ago had anywhere near that many employees. The comparisons don't really hold up, which is why they don't use metrics about all companies.
  - RHSeeger 2y ago
    CEO work/responsibility doesn't really scale up with company size, though. Sure, they're "responsible" for more people; but it's really the people that work for them that are responsible, and the people that work for them. Scaling up the size of a company generally adds more layers; it doesn't add more work for any individual at a layer. Admittedly, that doesn't really hold true for the initial "small company to large company" growth, but that's not really what we're talking about; and _that_ hasn't really changed at all in a long time.
  - chgs 2y ago
    Is the risk for a ceo of a billion dollar company 10 times that of a 100m dollar company? Or 10 times lesss than a 10b company? Are they personally accountable?
- johnnyanmac 2y ago
  Yeah, that's the biggest and most obvious loophole that came to mind with the idea. The ideal view is "well that's another probably million dollar company and they are subject to the same rules", but it feels like a game of Matryoshka. How many layers of outsourcing to we get to before the next doll is unsustainable? I think at the very least a company should be taxed for contracting a service they are able to pay for in-house. But there's a lot of factors to consider.
  - throwaway48476 2y ago
    You're 15 years late. https://youtu.be/rYaZ57Bn4pQ https://youtu.be/rYaZ57Bn4pQ

> just capping executive pay based on the lowest wages of the labor they pay. I really don’t see a problem with this, executives are employees too. Make their incentives align

chgs 2y ago

Lowest paid employees get outsourced. We already see it in most companies - they buy in cleaning services rather than employing the cleaners for example.

Aerroon 2y ago
Furthermore, CEO responsibility will not be scaled if their pay is capped. People keep citing the "CEOs earn X times more than they used to", but they conveniently leave out the this only applies to a tiny fraction of companies and that these companies have scaled up by a very large amount. Walmart has 2.1 million employees. No company 50 years ago had anywhere near that many employees. The comparisons don't really hold up, which is why they don't use metrics about all companies.
- RHSeeger 2y ago
  CEO work/responsibility doesn't really scale up with company size, though. Sure, they're "responsible" for more people; but it's really the people that work for them that are responsible, and the people that work for them. Scaling up the size of a company generally adds more layers; it doesn't add more work for any individual at a layer. Admittedly, that doesn't really hold true for the initial "small company to large company" growth, but that's not really what we're talking about; and _that_ hasn't really changed at all in a long time.
- chgs 2y ago
  Is the risk for a ceo of a billion dollar company 10 times that of a 100m dollar company? Or 10 times lesss than a 10b company? Are they personally accountable?
johnnyanmac 2y ago
Yeah, that's the biggest and most obvious loophole that came to mind with the idea. The ideal view is "well that's another probably million dollar company and they are subject to the same rules", but it feels like a game of Matryoshka. How many layers of outsourcing to we get to before the next doll is unsustainable? I think at the very least a company should be taxed for contracting a service they are able to pay for in-house. But there's a lot of factors to consider.
- throwaway48476 2y ago
  You're 15 years late. https://youtu.be/rYaZ57Bn4pQ https://youtu.be/rYaZ57Bn4pQ