In 2007, CEOs of major corporations were paid on average 344 times the average worker's pay. In the 1970's the ratio was only 40. This is outrageous. Some of this results from the fact that many CEOs sit on each other's corporate boards. A classic case of "You scratch my back and I'll scratch your's." This huge increase in compensation relative to the average worker's pay has occured for all other officers in corporations as well. See Table 6 in the following research paper:
http://faculty.chicagobooth.edu/workshops/AppliedEcon/archive/pdf/FrydmanSecondPaper.pdf
I strongly support regulations that require corporate boards to allow their stockholders to vote on whether or not they support the proposed compensation packages before they go into effect. The stockholders' vote would simply be a recommendation, but if the board goes against the wishes of the stockholders, the stockholders can remove the board members if they wish. Congress has been considering just such a bill:
http://www.thedailybeast.com/cheat-sheet/item/more-regulation-for-wall-street-execs/fat-cats/
Unfortunately, from what I've read most recently in the press, it seems that Congress is going to make it optional for corporations to allow stockholders this privilege! What kind of regulation is that? It sounds to me like the 35,000 lobbyists in Washington have been busy. If I were in Congress, I would publicize this attempt to turn this legislation into something nearly worthless, in the hopes that legislators would stand firm if their consitutuents were aware of what they were doing.
Shame on Congress if they allow this change in the Executive Compensation Bill.
We are facing huge long-term problems: a real unemployment rate of 18%, dysfunctional banks that are "too big to fail", a regressive tax structure that's stifling economic growth, prisons that are bursting at the seams, urban schools that are struggling, a health care system that still needs major reform, the lack of a coherent national energy policy that will protect our economy and the environment, and a government that has been encroaching on our civil liberties. For decades we have lived with irresponsible public policies from career politicians in Congress who care more about increasing their party’s power and getting re-elected than they care about solving long-term problems. They haven’t been honest with us, and they have been lousy public servants.
I’m different. I do not want to be a career politician. I am not a Democrat or a Republican. I’m a Problem Solver. I want to force members of Congress to be responsible, and implement sustainable solutions to real problems. Please read the positions I present on this website, and spread the word to friends and family.
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