How Much More Money Should a Manager Make Than Their Employees?

[one...two...tree 2,762]

Its nice

...unless you are at the bottom of a very large pyramid.

[slim 1,525]

I agree. But publicly traded businesses aren't exactly private businesses. That's the problem, in my opinion. If we were talking about the salary that the top manager of a sole proprietorship or partnership that is paid by the proprietor or partners, I would have no problem.

But when talking about a publicly traded company, we're talking about the allocation of funds that belong to a large group of people, many of whom are not particularly sophisticated and most of whom have little knowledge of the inner workings and dealings of the company that they are invested in. When company executives and members of a board of directors use their influence to pay out to friends or in virtual quid pro quo schemes, that is tantamount of fraud.

The problem is that in order for free market logic to work the agent acting on behalf of the company has to be incentivized to act to the benefit of the company and that often simply isn't the case under the current structure of corporate governance.

Don't those who own stock in a business get to vote on the directors, policies, etc? If you don't like the way it goes, can't you just sell your shares or buy more so you have more influence in the company's payroll? You don't have to invest in a company if you don't like it.

[Leatherneck 693]

DFH, you really must have a Hard-on for people with money...

[slim 1,525]

DFH, you really must have a Hard-on for people with money...

Maybe he can occupy some streets in front of their homes or something.