Should CEO's salaries be capped?

Should CEO's salaries be capped?

  • Yes, they should be capped

    Votes: 100 38.9%

  • No, they should not be capped

    Votes: 139 54.1%

  • Other

    Votes: 18 7.0%
  • Total voters
    257
It's nobody's business, except for the shareholders of the company, how much a private company chooses to pay its CEO.
 
homeboy said:
not you never indispensable there is always someone to replace you. they might not do the job as good as you only to keep the boat floating.
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I don't think you realise just how expensive it is to replace a good empoyee. Employers look well after good employees who can spell, use capital letters where they should and who do their work well.
 
deweyzeph said:
It's nobody's business, except for the shareholders of the company, how much a private company chooses to pay its CEO.
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Unless it's listed, in which case it becomes everyone's business :laugh:
 
PhreakBoy said:
I often argue that the high CEO compensation accomplishes the opposite in many corporations. The CEO's get compensated so well for 2-3 years of service that many do not plan on being at the company for longer and thus are not as motivated to work towards long term goals.

This results in poor decisions for short term profitability to maximise bonusses in the 2-3 years that they intend to be with the company.

There are exceptions, but they seem to be fewer of late.

One example I can think of is a company that have had 4 CEO's in the last 5 years. They've all been compensated very well to go and "turn the ship around" or "because the company is less attractive than it's competitors".

These CEO's have sold off assets, deferred maintenance and replacement of machinery, kept old tech far too long and each just leaves a bigger hole for the next.
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Exactly. I worked for a company where the corporate underperformed relative to pears year after year in terms of share price, and the CEO would earn more in a day than I earned in a month. Was ridiculous how clearly bad he was but in this industry average CEO salaries are huge (Banking) and hence he walked away with huge money every year. I would watch the results broadcast and they would brag how well they did to the market and how many billions they made but the next day we would be told sorry you can only get a 3% increase as we did not do well enough. The duplicity was staggering. As their income was always published as it is a listed company I watched how over 5 years the exec pay increases where always on average more than double ordinary staff. Like I said. Its sickening how those in power at the top steadily increase the divide moving us into a world where are essentially slaves to them.

Inflation is not what's killing me, its more that most of the time employers don't give increases to employees in line with inflation. Unless you are the CEO, then you can take away your 40 million a year and laugh. We have monopoly laws for a reason. When the few get too much power they can use that power to twist the system unfairly to their favour. I think executive pay is at the point where similar rules need to start applying.
 
giggity said:
They shouldn't be capped - they should be scaled based on the lowest 5% of employees' paycheques.
If you're paying workers R200 per day while making R1 billion profit, then your priorities are wrong.

I don't think everyone deserves to be paid amazingly. If you flunked out of high school and aren't providing value why should you get anything? But if you do your work, you should always be able to afford food and safe shelter. On the other end, if a CEO increases profits and, subsequently, creates employment opportunities and increases salaries, then they should be rewarded handsomely for it.

CEOs should be paid more, but only if they recognise that so should all of their company's employees. Employment > profit. Employees over automation and outsourcing.
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What if that R200 is market related?
 
Mogo said:
Unless it's listed, in which case it becomes everyone's business :laugh:
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And then it should be forced to a low level, to discourage widely accepted corporate lying. Doesn't the MD still do most of the work anyway?
 
The government would lose out on a substantial amount of personal income tax revenue if it was stupid enough to put an upper cap on salaries.
 
Bliksis said:
Market related on a job ad: We're probably going to lowball you.
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The point of my question is: I can turn over a million per day, I'm paying you the market related salary. Why should I increase your salary?
 
Cius said:
Exactly. I worked for a company where the corporate underperformed relative to pears year after year in terms of share price, and the CEO would earn more in a day than I earned in a month. Was ridiculous how clearly bad he was but in this industry average CEO salaries are huge (Banking) and hence he walked away with huge money every year. I would watch the results broadcast and they would brag how well they did to the market and how many billions they made but the next day we would be told sorry you can only get a 3% increase as we did not do well enough. The duplicity was staggering. As their income was always published as it is a listed company I watched how over 5 years the exec pay increases where always on average more than double ordinary staff. Like I said. Its sickening how those in power at the top steadily increase the divide moving us into a world where are essentially slaves to them.

Inflation is not what's killing me, its more that most of the time employers don't give increases to employees in line with inflation. Unless you are the CEO, then you can take away your 40 million a year and laugh. We have monopoly laws for a reason. When the few get too much power they can use that power to twist the system unfairly to their favour. I think executive pay is at the point where similar rules need to start applying.
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You have some outliers that “failed“ for whatever reason, so you want to force rules onto everyone based on those.
 
giggity said:
Then the market is garbage. If you think R4000 per month is a reasonable salary you need to try live off that.

And if you want skilled workers to stay in the country the average salary needs to increase.
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The R200 was just an example. Look at the broader picture and even if I offer above average salary, still the CEO is 200x.
 
NeonNinja said:
The R200 was just an example. Look at the broader picture and even if I offer above average salary, still the CEO is 200x.
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If a CEO can up that R200 to R400, and the CEO still gets 200x I don't really care. If they increase profits, increase that 200x to 250x and give the R200/day person a 3% increase, way below inflation, then there's an issue.

It shouldn't matter how much the top dogs earn if the people at the bottom are happy is my point.
 
If my salary gets capped, I am voting to close the company and the 70 odd people I employ can enjoy being on welfare. I am not dealing with this stress for a capped salary, would much rather move elsewhere in the world.
 
While some CEO's enjoy the money that they make, x million per year, is just crazy, IMO. If I was appointed CEO of a company, I would have said that I really don't want to have these crazy bonuses at all, but rather put that back into the business, and it's employees, draw a normal liveable salary.

For me, money is not that important, I'd rather invest that into people, and be a humble person.
Not everything is not about money.
You can't buy a real friend with money. I'd rather be having a moderate salary that I can live off comfortably, and be surrounded by real friends and family that cares, than to live alone in a mansion, surrounded by people who are after the money.

Earthly possessions is not that important. That includes money. People's relationships is more important to me than making a dump-load of money.
 
They are already capped by what the shareholders decide.

The real question is: who has the right to decide CEO remuneration? Certainly not the government, in my view. The only people who have the natural right to decide are the owners of the company. Period.
 
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