this post was submitted on 16 Sep 2023
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The historic UAW strike puts an exclamation point on more than a decade of efforts by Washington lawmakers to narrow the pay gap between top executives and workers.

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[–] SCB@lemmy.world 15 points 1 year ago* (last edited 1 year ago) (8 children)

“The argument that firms would make is that the job of a CEO has gotten exponentially more difficult in terms of responsibilities, litigation risks and outside pressure,” Dambra added. “Stock-based compensation allows for an alignment of interests between shareholders and managers. These are market (i.e. competitive) prices, and CEOs that are underpaid relative to their peers would leave.”

This is actual relevant information from this article, and a spotlight shone on why CEO pay actually needs a cap.

The pay difference between a CEO and manufacturing laborer is irrelevant to any discussion about CEO pay. The externalities of poaching CEOs from underfunded competitors can and should be seen as anti-competitive practice.

Taking the CEOs entire paycheck and distributing it to workers gets the workers pennies, each. Worker pay and CEO pay are not linked at all.

[–] SlopppyEngineer@discuss.tchncs.de 17 points 1 year ago (1 children)

By that logic, every front line worker should've received a 1400% increase during COVID.

[–] SCB@lemmy.world -4 points 1 year ago (1 children)

You seem to think this money is given as a gift, or as some sort of recognition, and instead it is how they purchase talent.

[–] SlopppyEngineer@discuss.tchncs.de 1 points 1 year ago (1 children)

Then those talented people will have to come up with a new way of doing things. Humans as a species are sensitive to relative wealth differences. It's hardwired. Riding tide lifting all boats kind of thing

[–] SCB@lemmy.world 0 points 1 year ago* (last edited 1 year ago)

Rising tide lifting all boats kind of thing

That's not what this means.

The argument "you have to make less money because I want you to" is not a very strong one.

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