Monday, May 13, 2013

How much Is A person's Work Worth?

       I've got a question for ya. How much is responsibility worth? I mean, if I have a job that requires me to put part A into part B, and if I get it wrong, the whole finished product is screwed up. Then that's responsibility. As opposed to putting part A into part B, but if I get it wrong, the inspector catches it and fixes it, Which would move the responsibility to the inspector. Now the one with the responsibility should be compensated for the additional responsibility.
       The same is true in the case of the Chief Executive Officer of a company. He, or she, has responsibility for the entire company. Everyone pretty much agrees with that. The only question is just how much is the responsibility worth for that CEO. Should it be fifty times as much as the average worker? Or a hundred times as much as the worker, or a thousand time as much? Or should there be no correlation between them.
       Suppose you're an average worker making $25,000 a year, should your boss make $10,000,000? Even if you're making $50,000, how much should he make? Should it be determined by how well the company does? Because some CEOs make that much or more even though the company does poorly or even has to declare bankruptcy.
 And I've seen where companies declare bankruptcy, pay the CEO a bonus and demand the employees take pay cuts. So let me ask again, just how much is responsibility worth? Here's another example. You work hard, you make that $25,000 or $50,000 and you pay into some sort of retirement plan. That money gets invested. Investment managers make more than your boss makes and get special tax breaks to boot.
       The thing is, there's no answer to the question I asked about the value of responsibility. If beauty is in the eye of the beholder, compensation is in the pocket of the well connected, which means the boss. And it seems that fair compensation is whatever bosses want it to mean. And if you don't like it, don't just quit, because you may not be able to collect if you do.
       Well some of these companies pay their average worker maybe $25,000 a year, some pay $50,000 per year. But many of these same companies pay their CEOs tens of millions per year. So if your an average worker in a company and you make $50,000 a year and your CEO makes $50,000,000. a year, that's 1,000 times, if you're that average worker making  $25,000, that CEO is making 2,000 times as much as you. Should that matter? How much worse can a CEO be if he only made $1,000,000. Would that mean that he'd let the company go down the tubes?  

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