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If the President can only make 400,000; should their be a cap on CEO pay to the same amount?


88Comrade2000

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A person's salary isn't determined by how much social utility they generate; it's determined by how much value they bring to their employer's firm. More often than not, the CEOs that you see in the news head publicly-owned companies; through a board of directors, they are employed by the stockholders. If, under their tenure, there's a generous increase in share value and dividends, they merit the pay they get, end of story.

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A person's salary isn't determined by how much social utility they generate; it's determined by how much value they bring to their employer's firm. More often than not, the CEOs that you see in the news head publicly-owned companies; through a board of directors, they are employed by the stockholders. If, under their tenure, there's a generous increase in share value and dividends, they merit the pay they get, end of story.

Well, that would be true, but it seems to me that i hear story after story of failing companies giving enormous severance packages to exiting CEOs. It seems like success has very little to do with compensation at the top.

And no, I don't agree with the idea in the OP. That is absurd. However, CEO pay is outrageous and something needs to be done to control the income inequality that is spiraling out of control.

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The severance packages are a enticement for them to accept the position...if ya want to make the argument some board of directors offer too much I would agree...but it is their company to run,not mine

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Well, that would be true, but it seems to me that i hear story after story of failing companies giving enormous severance packages to exiting CEOs. It seems like success has very little to do with compensation at the top.

And no, I don't agree with the idea in the OP. That is absurd. However, CEO pay is outrageous and something needs to be done to control the income inequality that is spiraling out of control.

Most of those stories are misleading. Ousted CEOs are lucky if 20% of their severance package comes in the form of hard cash. The majority of it comes in the form of unvested deferred stock options.

The severance packages are a enticement for them to accept the position...if ya want to make the argument some board of directors offer too much I would agree...but it is their company to run,not mine

Exactly.

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No. But stacking the board that determines compensation with friends is bad. The good ol boy network running companies needs to be broken up.

---------- Post added October-6th-2011 at 11:47 PM ----------

The severance packages are a enticement for them to accept the position...if ya want to make the argument some board of directors offer too much I would agree...but it is their company to run,not mine

only job on the planet where this ridiculous logic isn't laughed at. Offer them golden parachutes that cover them when they scree up... Uh... To attract the beat leaders. Yup makes perfect sense.

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this thread was going nowhere the second it was posted, and we've already had accusation of socialism and religion bashing in only 11 posts. kudos tailgate crowd, you exceed my expectations. i thought at least 30 posts would've been needed for the religion bashing alone, but you went ahead and did the obligatory socialist dig as well. impressive.

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If the President can only make 400,000; should their be a cap on CEO pay to the same amount?

After all, the leader of the free world can do alot of good or bad; much more than a CEO can. Or can they? Maybe the President should get a CEO type salary?

Wouldn't it not be the free world if we set price ceilings?

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No. It's their company and their money, so if they want to make it rain on themselves, more power to them. Anything less goes against everything we stand for as Americans.

Does that mean they deserve the current tax rate they are getting? No.

Does that mean we shouldn't enforce our laws designed to protect the bottom 99% from being screwed over by the top 1%? No.

Does this mean that corporations should be given a free pass donating as much campaign money as they want, which is obviously having an effect on our crippled and corrupt political system? No.

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The severance packages are a enticement for them to accept the position...if ya want to make the argument some board of directors offer too much I would agree...but it is their company to run,not mine

So you don't have a 401K or retirement account invested in the market? It may be YOUR company too, and you don't get a say in the matter.

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To want to be president, you either have to be power hungry, a true patriot or go in knowing just how many back door connections and riches will come with it, because compared to a CEO, who can do anything he wants at any time on the companies dime, without the entire world knowing your business and having a golden parachute in case things don't work out or you tire of it, just doesn't match up.

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