From: Adam <""4thwormcastfromthemolehill\"{at}the field.near
the bridge">

Tony Williams wrote:
> Adam wrote:
>
>> Tony Williams wrote:
>>
>>> I thought that term might catch your eye. The problem is that the
>>> rewards become disproportionately large, leading to huge amounts of
>>> wealth locked up in the bank accounts of a tiny number of people.
>>>
>>> Success should be rewarded of course, but the scale of the rewards
>>> has gotten out of control. In the present system once you've got a
>>> lot of wealth it becomes easier to get more where it should really be
>>> the other way around. A progressive tax system is a good way to
>>> achieve this.
>>>
>>> I rather like the idea of limiting compensation of the highest paid
>>> staff to some multiple of the lowest paid.
>>>
>>
>> Ditto. If not then it has to be tied to performance such that if the
>> performance of the company is poor then the remuneration to the
>> directors etc should be the lowest in the company.
>>
>> At the moment there is this sort of golden floor so no matter how crap
>> the results of the company are, the drectors etc get paid but if the
>> results are good then....obviously (apparantly) bonus'es are called for.
>
>
> Right. That's why I was careful to specify "compensation",
not "wages".
>
> I find it amazing that anyone can try to justify the huge difference
> between upper management earnings and that paid to the people on the
> shop floor. Say you set the limit at 100, i.e. the worst off gets at
> least 1/100 of the best. A minimum wage in that company of $50K still
> allows $5M for the high flyers and you'll be able to attract better
> people for most positions due to the higher wages.
>
> Plus, they have an incentive to make the company more successful knowing
> that if the management want to award each others bonuses then everyone
> will get a share.
>
Yup.

I also quite like the idea of the bonus worked out by a formula which
includes wage level & length of service as then you don't get the silly
sight of a manager joining in September & getting a whopping end of
year bonus, vastly larger than the people who actually made the the bonus
happen on the shop floor & have been loyal etc to the comp for years.

Adam

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