CEO (Cap Executives' Outrageous) Pay Act

To 50 times that of the lowest paid full timer

sponsored by aGREATER.US • co-sponsors: (1)Become a Co-sponsor

primary topic: Equality
secondary topics: Competitiveness, Economy


If the lowest paid full time employee in a publicly traded corporation makes $20,000 a year then the CEO pay would be limited to $1,00,000 per year. If the lowest paid staffer is raised to $30,000 then the CEO can be rewarded with a $1,500,000 base compensation.

This would be a great incentive to raise the pay of those who need it the most. And the CEO must be the highest paid employee in the corporation—limiting other executive's pay, too.

The limit would not affect stock option compensation as long as they are out of the money call options. So, the stock price must appreciate to be “in the money” or worth anything. Workers benefit, stockholders benefit, and if the CEO performs, he or she can benefit, too.

CEO pay, now, is obscenely high, and that causes complacency and does not make for a greater company, jobs, or United States.

This would only affect publicly traded companies, as not to over regulate small businesses who primarily need customers to create local entry level jobs. And it is hard enough, today, for small businesses to even stay in business.

If the CEO is unhappy with this arrangement, they can leave and innovate their way to a better pay package. This would make room for someone hungrier to do a better job for consumers, workers, managers, and stockholders (in-other-words us).


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