Wall Street Pay Caps Are a Terrible Idea

After setting aside the anger we have when bail out funds paid huge bonuses, I agree that the government has no business regulating pay of CEOs. That said, such things as excessive pay and bonuses should be part of considerations in such things as mergers, anti-trust, and other governmental concerns, as part of a test of a company's management of its financial resouces.



If a company is moving toward bankruptcy based on faulty management practices, you must consider the wages paid to those who make bad decisions. One must assume you are paying big bucks to qualified people who won't ruin your business.



How many raises will you give to an assembly line worker who constantly breaks his tools and damages your products? How big will his bonus be when you finally do let him go? You need to ask the same questions regarding your CEOs.
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