Cap on CEO compensation a bad idea or good idea?

[sundizz]

U.S. CEOs earn from 400 to 500 times the median salary for workers. For CEOs in the U.K., the ratio is 22; in France, it's 15; and in Germany it's 12.

I honestly don't understand why this is (and I'm headed to be a CFO in 5-10 years).

It really isn't fair in any corporation to pay the top executives these ridiculous salaries when a normal college educated, salaried employee puts in 40-60 hours and doesn't earn enough to even be middle class.

http://money.cnn.com/2015/04/14/news...pay-increases/

[falc39]

CEO salary is linked to shareholders of the company.

Shareholders base their decisions on how well the company is doing in the stock market.

The stock market is at an all time high in the US, aided by policies from the Federal reserve and the obvious asset bubbles that they have created in the markets.

That makes CEOs and shareholders very happy.

People cheer on these policies. The economy must be "recovering" and the fed is doing a good job. Ironically, they complain about CEO pay at the same time

[kNIOKAS]

It could be a good idea, although it's also too inflexible.

If things are to be fair, the CEOs should be paid what they deserve, meaning they should be paid the least amount of what keeps them in job, just like with all the other employees. CEOs are usually people like everybody else, and there must other similar people that are able to run company for less. What I'm saying is, not all the CEOs are a phenomenon human beings.

Also, it would make sense that in deciding the pay of the top management the workers of that particular company would be involved. What I mean that the shareholders should be the employees themselves, in that way the cap would not be needed. All a happy family based on merit.

[theballerFKA Ace]

U.S. CEOs earn from 400 to 500 times the median salary for workers. For CEOs in the U.K., the ratio is 22; in France, it's 15; and in Germany it's 12.

Your figures are bullshyt. Yes, i know there are some sources out there trying to use fuzzy math to get their agenda driven home but it's ridiculous to any non-retarded person. For example, the average CEO in Germany makes 6 million USD. You really think the median salary for a German worker is $500,000?

The top CEOs in America take more risks than top European CEOs, as their compensation is usually tied to stock price(company shares) and performance, while European CEOs tend to have fixed compensation packages. So yes, American CEOs in the last few years of soaring stocks make much more than their European counterparts.

Even so this is how it really breaks down.

CEO/Average worker income ratio

USA - 354/1
UK - 84/1
France - 104/1
Germany - 148/1

http://www.theglobalist.com/just-facts-ceos-rest-us/

[Dresta]

CEO salary is linked to shareholders of the company.

Shareholders base their decisions on how well the company is doing in the stock market.

The stock market is at an all time high in the US, aided by policies from the Federal reserve and the obvious asset bubbles that they have created in the markets.

That makes CEOs and shareholders very happy.

People cheer on these policies. The economy must be "recovering" and the fed is doing a good job. Ironically, they complain about CEO pay at the same time