In my recent post, The Job Solution, some of the panoply of policies to increase demand for people were a few to increase equity in pay. Currently a cabal / clique / camarilla of the CEO club and their friends on Board Compensation committees control executive level pay and, of course, those hogs slurp down most of the food in the trough for themselves, elbowing out the common man and woman.
Today I highlight practical polices to shift more PAY towards the common man and woman. Some are repeats that I add a bit of detail to make their operation clear. Our goal: increase demand in the economy for people. We do this by obvious means: reduce the cost of hiring people, increase the cost of hogs, and make high level pay open and more under the control of shareholders.
I. No tax deductions for ANY compensation amounts over the US President's salary. Companies can pay the hogs, but no tax benefits. Effect: hiring a new person for $100,000 is cheaper than laying off people to replace with machines and increasing pay of the boss.
II. Any corporate pay (executive or otherwise) contacts providing for pay over $1 million must be approved in advance by the shareholders in a mandatory, binding vote by secret ballot. This will limit the number of votes and highlight the pay of the hogs.
III. For any negative vote, the Compensation Committee is fired and replaced by all new people, required to be shareholders of at least 1,000 shares and who must certify they have NO relations with the CEO and other Board members.
IV. All corporate pay over the US President's salary has clawback provisions, making THEM bears the costs of all those "non-recurring losses" they now like to put onto shareholders and lower level employee pay. Nowadays, they keep the pay and layoff people to "restructure" the company, in effect rewarding themselves for their mistakes. Stop this invidious practice.
All these policies maintain corporate freedom to reward performance, but shine the light of day onto that pay and make its determination truly independent and under control of the shareholders. Let's do this now.
Word of the Day
"Mistery" - noun [$1000] T. S. Eliot usage (among others); from usage of "Mister" obsolete, archaic and dialect.
Mistery means a general reference to 1. occupation, service, etc.; 2. office, duty, business, function; 3. employment, occupation, practice; 4. skill or cunning in a profession; 5. other similar definitions.
Sentence: We need more miserly pay for mistery in the executive suite.