RE: Swiss propose to limit corp. executive pay to 12x their lowest-paid employees
November 15, 2013 at 1:28 pm
I want to know how the '12' value was chosen. Is it just because it makes for a good political statement (12 months pay in 1 month, etc.) or has someone actually tried to make a cost analysis on an executive's role in the company?
My guess is the former. The lowest paid jobs should be those that require no skill, experience, training, or education. That is, after all, why they are low paid. The highest wages should be based on how much more of those factors the job requires, and then other sorts of things like company loyalty, role importance, etc.
I'm not saying execs should earn millions of times what the lowest paid earn, but I suspect the 12x number is more political than objective.
My guess is the former. The lowest paid jobs should be those that require no skill, experience, training, or education. That is, after all, why they are low paid. The highest wages should be based on how much more of those factors the job requires, and then other sorts of things like company loyalty, role importance, etc.
I'm not saying execs should earn millions of times what the lowest paid earn, but I suspect the 12x number is more political than objective.
