Do you really think today's announcement about salary caps for "bailed out" firms is the end of the matter? Once the government gets its hands into something it doesn't let go - it pushes them deeper. So this is going to spread.
I make far less than $500K and never expect to be even near that level of compensation in my lifetime. So why does this bother me? Because I WANT my CEO to make as much as possible because:
- The more my CEO makes, the more my Executive Vice President will ask for, and get
- The more my EVP makes, the more my VP will ask for, and get
- The more my VP makes, the more I can ask for, and get
And since I know what my CEO and EVP make, I can guess what my VP makes. And based on what my boss makes, I know where I can take my salary. The lower my CEO's pay, the lower each rung in the ladder will go.
So this salary cap not only caps the CEO's pay, it caps everyone in the organization.
Welcome to Socialism.