Well, that doesn't make sense (the title), does it? Yet that is what the current proposals seems to be aimed at. There is an excellent editorial today at The Wall Street Cheat Sheet (here) addressing this very question. Here is a excerpt from the editorial entitled "Executive Pay is not the Problem ... Stealing Is":
Capping executive pay is a misguided remedial effort. If a company adds real value to society, people like Bill Gates and Steve Jobs should get wealthy. Unfortunately, our economic system is overrun with barely legal scams masquerading as businesses. In those cases, we can better protect the benefits of capitalism (and capitalism itself) by preventing such thievery from happening in the first place. Otherwise, we are merely calling criminalism by the more respected name “capitalism”.
Read the entire editorial here.
Pay Caps for Criminals
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