Equality 1:12

Originally posted by joe beyser
Where is the empirical data for your comment?

Err, the near total collapse of the global economy, massive bail outs of company's being run by CEO's on inflated salaries that have usually been set by other CEO's on inflated salaries, WAKE UP!

Originally posted by joe beyser
Where is the empirical data for your comment?

Jeffrey Skilling, Calisto Tanzi, Olli-Pekka Kallasvuo, ...

Originally posted by KazetNagorra
Jeffrey Skilling, Calisto Tanzi, Olli-Pekka Kallasvuo, ...

Werent those they guys that went down in an airplane in the Andes Mountains in Chile?

Originally posted by KazetNagorra
Most small business owners tend to reinvest profits in their business. Very few of them will exceed the 1:12 ratio.

And if a CEO gets deferred compensation is stocks or options it could fit the same ratio and not really change anything.

Originally posted by kmax87
With the global economy fully established and globalization now fully entrenched at some point where can business run and hide if a 1:12 ratio were instituted. In the long run do you want to see American workers paid that of the Indians or the Chinese?

The whole world won't adopt something so foolish. CEO are worth more than 12 times low level workers and should be paid as such.

Originally posted by joe beyser
Werent those they guys that went down in an airplane in the Andes Mountains in Chile?

Jeffrey Keith "Jeff" Skilling (born November 25, 1953) is the former CEO of the Enron Corporation, headquartered in Houston, Texas. In 2006 he was convicted of multiple federal felony charges relating to Enron's financial collapse, and is currently serving 14 years of a 24-year, four-month prison sentence at the Federal Correctional Institution (FCI) – Englewood in Littleton, Colorado.

Calisto Tanzi (Collecchio, November 17, 1938) is an Italian businessman notorious for embezzling an estimated eight-hundred million euros from Italian company Parmalat, founded by him, resulting in a great loss for the company.[1] Tanzi was the founder of Parmalat and its CEO, at the time. Tanzi founded Parmalat in 1961, after dropping out of college. Parmalat collapsed in 2003 with a 14bn euro ($20bn; £13bn) hole in its accounts in what remains Europe's biggest bankruptcy.

Nokia replaced its chief executive, Olli-Pekka Kallasvuo (OPK),with Stephen Elop, the head of Microsoft’s business unit, in a bid to “accelerate the company’s renewal” after an ugly 70 percent decline in market value over the past few years. The move was a long time coming.

Originally posted by quackquack
And if a CEO gets deferred compensation is stocks or options it could fit the same ratio and not really change anything.

That is another risk of such a measure. In any case, Swiss voters rejected the proposal.

Originally posted by KazetNagorra
That is another risk of such a measure. In any case, Swiss voters rejected the proposal.

I would have thought that deferred stock options prove a CEO's worth. If the company tanks under their guidance (or lack there of) then at least their remuneration is commensurate with their skill. Not sure why at a particular year's stock level the deferred option couldn't still be based on a 1 in 12 ratio?

Originally posted by kmax87
I would have thought that deferred stock options prove a CEO's worth. If the company tanks under their guidance (or lack there of) then at least their remuneration is commensurate with their skill. Not sure why at a particular year's stock level the deferred option couldn't still be based on a 1 in 12 ratio?

We could limit the value of stock options, but why should we. Let the market decide what people should earn.