Executive Compensation for the People
There is a bill in the process in front of the House of Representatives that tries to put the issue of salary packages and compensation received by executives of public companies in front of shareholders. This bill is actually expected to successfully pass through the house; However, it is not clear how well the Senate will accept it. Is this bill the right direction for modern America, or do we need to consider more closely the economic implications of such decisions?
The White House has officially registered its opposition to such a plan, but its supporters do not care. Many feel that the compensation plan of the main officials of a public company must be linked to the performance of the company and the officers themselves, and not to the numbers the officers want to receive.
If this bill is passed it could place a large amount of power in the hands of shareholders who are upset with the behavior of some companies lately, with a decline in profits and terrible business practices while company officials have taken a large compensation package that includes salary, benefits and options stock. Every official can generate hundreds or even thousands of profits even when the company is performing poorly, which according to shareholders is an unfair outcome.
Many wonder whether the officers in charge of these companies will tighten their spending belts if their own salaries are associated with their performance rather than their desires, and with many companies not making a profit with large salary packages coming out, and the increase that occurs almost every year many investors start complaining loudly.
While President Bush has now urged company officials to step up and take responsibility. He also said that it was not a problem that the government must be involved. How far does the government have to expand to private business? How many people really feel comfortable with the idea of asking the government to determine what their salary is? Most Americans can agree that they will not like the idea of a government that interferes with work and pays them.
At the same time, while most Americans do not want governments to interfere with their work and careers, many still want a number of steps taken to hold executives responsible for multi-million and multi-billion companies that employ hundreds to thousands of people.
Many argue that the concept is not new; this is similar to the ideas that currently exist in countries such as Sweden, Australia and even in Britain. With examples such as those that will be followed, it makes one wonder whether this really has the opportunity to pass the DPR and the Senate after the voting time arrives.
With time as the main factor, it is scheduled to vote on this issue in the DPR in the near future, which is expected to pass without much opposition. This is the next step in the Senate, where it begins to become sticky with people who are unsure of the results once the vote in the Senate begins. However, with increasing support from people, many of whom work for companies affected by this problem, there is room for mass political influence, which will certainly make the results interesting.