Executive Pay

The discourse regarding excessive executive pay packages seems to center on loss of talent where talent is needed the most. I understand that unfettered capitalism is being blamed for our current crisis. While in actuality, it isn’t capitalism at fault, it’s human greed. Nevertheless, if you’ll bear with me, let’s return momentarily to capitalism as the possible candidate to balance both issues.

Could it be that the brain-drain from the bailed-out firms might in turn, drive down executive pay across all industries in the long-term? How many millions does someone need in order to live a comfortable lifestyle?

Under human and capitalistic responses, the stronger companies theoretically need only pay slightly more to these executives than the pay-package-capped companies were able to pay. Just as pay was driven up, pay can be driven down. It’s all about balance.

And what would the extra savings be used for? Reinvesting in the economy. Into the company, industry, society. Hiring more staff, paying staff more and the executives less – again, balance. Keeping more work in our own country. Financing health-care and education, etc. Why does capitalism have to be all for one and none for all?

Where is the obligation to our fellow brethren? Can’t we find a way to find a
better balance?

Cross posted in comments on Globalethics.org

http://www.globalethics.org/newsline/2009/10/26/pay-czar/comment-page-1/#comment-1643