This proposal -- like some of the other rules implemented under Dodd-Frank -- will do little to accomplish the desired effect of narrowing the gap between employee compensation and executive compensation. If anything, it may have the opposite effect.
U.S. companies should consider radically altering their corporate cultures along the lines of Management Theory S. This means replacing sky high senior executive compensation packages with more modest salaries that truly reflect executive performance.
Our attention spans are on Miley Cyrus, not the precarious long-term health of, say, the bond market. If we don't wake up and change the way we run our companies and invest our capital, immediate gratifications are going be a dim memory.
The growing profits of some of the nation's largest corporations and wealthiest people in America result from the labor of people whose work is rewarded with poverty level wages. That makes no economic sense. And it's just plan wrong.
Let's raise a glass to celebrate the 50th birthday of the Equal Pay Act, but not too high. If things don't change, we're on the road to a permanent (mostly female) underclass. We still have a lot of work to do.
For people who were blown away to learn recently that the 11 largest global pharmaceutical companies made an astonishing $711 billion in profits over the last decade, here's another measure of the industry's greed.