Thursday, February 05, 2009

Executive Salary Caps


I'm happy to hear that President Obama supports imposing a $500K salary cap on executive compensation for those companies accepting bailout money. In general, senior executives in the U.S. make so much money that the pay gap between them and the little people is just disgusting. Why does one person need to earn multiple millions of dollars each year? Some people may not be aware of this, but executive compensation at publicly traded companies is public information disclosed in 10-K filings. You can check out how much the execs make per year.

I think it's justified that compensation is finally being talked about. Some people fear that such salary caps will hinder the search for talent. However, I doubt that someone's brain power could be worth so much money. Most of these folks are just business folks. It's not like they are going out and saving the world or researching the latest drug to cure the worlds' diseases. I could see those folks being paid the big bucks because what they do improves the lives of so many people across the globe.

People who earn such excessive amounts of money should be required to give a percentage of it away to charitable causes. This way society as a whole could benefit. Let's share the wealth. ;-)

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