Executive Compensation as a Social Issue

[Captain_America]

In the 1900s, when large corporations first began to emerge, many writers suggested that they might grow to a size which would be unmanageable by one individual. . . casting doubt on the corporate structure’s usefulness for large entities.

We today have seen a soaring differential between what the average worker makes and the top executives. While there has been a constant attack on the average worker’s take home pay, there has also been a push to assert that managers deserve more money, and that managers make the profit and thus deserve more.

However, in recent years, studies have shown no clear link between pay and performance.

At what point does executive compensation and rectification of this disparity become a social issue?

 

[stbruno]

I think that point is mute…look at AIG.

 

[kesa82]

Hmm, I don’t know.

But when was there ever a stable, healthy republic where the demographic was of a small wealthy elite, a sizable number of mercinaries, and a very large number of helpless working poor?

I’m not sure I would describe the general free population of colonial or 19th century America as " affluent " or " middleclass " indeed, they generally seemed downright shockingly poor —but they certainly weren’t serfs.

…I’ll leave it at that.