For many years politicians have been complaining about the perceived over-paying of management in public companies. Everyone has heard about the huge golden handshakes given departing executives upon leaving companies they have destroyed. John McCain has stated “all aspects of a CEO's pay, including any severance arrangements must be approved by shareholders” (Mason, 2008). An article in The Economist (2008) argues though that although managers pay has gone up faster than workers pay, managers pay is by and large based on financial returns.
Saturday, November 8, 2008
The subject of “living wages” or higher minimum wages has sparked vigorous debate in every city or state where the issue has been put on the ballot. The subject invokes partisan politics with the left declaring “big business” only wants profit, and the right stating the market should determine wages. The truth economically tells a different story.