American corporations vary in numerous and varied degrees from corporations of other countries.

Question

For example, in Japan, the government limits the highest wages a corporate officer may receive based as a multiple of what the lowest wage earner in the corporation receives. At one point, the highest paid employee of a Japanese corporation could receive only sixty (60) times the wage of the lowest paid employee of the corporation. Is this a wise regulation, or does this somehow limit the competitiveness of Japanese corporations? Do you think that Japanese corporations in general may be less competitive in the world's marketplace than American corporations because of these renumeration (wage) restrictions? What about the common scenario in which a board of directors in a major corporation chooses to provide bonuses and/or raises to corporate executive officers despite the corporation failing to have a profitable year? What about a board providing bonuses and/or raises to top executives in years in which the corporation was forced to lay off?

Answer 1

A system like that certainly beats how the American system works. I mean the kind where executives earn millions of dollars annually due to creative accounting methods, like Enron, where the top guys are syphoning off all the money that isn't really there. Then they get a slap on the wrist after putting thousands of people out of work. American corporations need a major overhaul, and I think it should be legislated. No more "cooking the books".

Answer 2

I suppose it is possible for people to be paid according to the amount of wealth their effort creates. In which case I find it difficult to accept that a managering director is 60 times as productive as a floor sweeper. But it may be possible and in this case there should be no limit.

Trouble is that the directors are not productive to this or any degree and the money they are paid is due to monopoly priviledges associated with their social position. The answer is for industry and commerce to be more competitive and this will only happen when monopolies are not allowed to dominate so much.

Answer 3

A CEO being able to make billions compared to the tens of thousands a regular employee makes (who makes the CEO's money for him/her) has nothing to do with encouraging competition. Competition does not have to resort to a "dog-eat-dog" level where people are getting exploited and screwed left and right. It IS still possible for technology, and society as a whole to advance without all of that.

Respect to Macro, you took the words right out of my mouth.

Peace