Author Topic: Should the Government control CEO compensation?  (Read 2736 times)

Offline Phenominal1

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Should the Government control CEO compensation?
« on: May 11, 2010, 06:27:31 AM »
For my Economics class, we have a debate coming up in 2 weeks. My subject is the cons of government controlling CEO compensation. So I thought this would be a good place to open up some debate because I'm sure some here are for it while others are against it.

For me, this is a hard subject and I can see this argument going either way. So I am asking for some input from everyone. What could be some subjects I can use for my argument against the government controlling compensation?
Jake Knight


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Offline piperspitt

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Re: Should the Government control CEO compensation?
« Reply #1 on: June 06, 2010, 10:23:48 PM »
The government can not violate the rights of a company to pay what it chooses to the person it chooses anymore than it can tell us what our rate of pay will be ( unless of course we work for the government.).
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Online dilbert505

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Re: Should the Government control CEO compensation?
« Reply #2 on: June 06, 2010, 10:31:11 PM »
The government can not violate the rights of a company to pay what it chooses to the person it chooses anymore than it can tell us what our rate of pay will be ( unless of course we work for the government.).

The government can tell us what our rate of pay will be, or at least on some level they can. Minimum wage laws, for example. It's not that much of a stretch to maximum wage laws, given the appropriate court ideology (which we don't have, and that's probably a good thing) or enough public outcry for an amendment to get passed (which we definitely don't have, and that's without question a good thing.)
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Offline piperspitt

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Re: Should the Government control CEO compensation?
« Reply #3 on: June 06, 2010, 10:36:57 PM »
That's not telling you what it will be, it's just a floor that state governments continue to raise. This is pulling the middle class down to the lower class as the middle class wages stay the same while costs rise to offset the new wages given to high school kids. Great move government.
"I was Rowdy before rowdy was cool!"

Offline Turd Ferguson

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Re: Should the Government control CEO compensation?
« Reply #4 on: June 06, 2010, 10:46:10 PM »
I think CEO compensation limits are acceptable when the company in question is receiving federal bailout money.

Offline piperspitt

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Re: Should the Government control CEO compensation?
« Reply #5 on: June 06, 2010, 10:50:21 PM »
I think CEO compensation limits are acceptable when the company in question is receiving federal bailout money.
I agree with you, but only if it was an agreement to receive the bail out monies, and nit an actual law. A contract is one thing but a blanket law is completely different.
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Offline Xaverus

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Re: Should the Government control CEO compensation?
« Reply #6 on: June 07, 2010, 12:34:26 AM »
Bailouts only transfer debt and devalue holdings and won't solve the result of poor practices like bankruptcy can. Accept no pay regulation arguments based on environmental or racial concerns, they should be out of context.

Offline Phenominal1

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Re: Should the Government control CEO compensation?
« Reply #7 on: June 07, 2010, 07:18:02 AM »
Wow...nice to see this topic flaired up after my debate...lol.
Jake Knight


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Offline Ravnos

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Re: Should the Government control CEO compensation?
« Reply #8 on: June 07, 2010, 08:16:48 AM »
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The government can not violate the rights of a company

I'm sorry, but company's do NOT have rights.  People have rights under the constitution, but it does nothing to protect a company.
I'm curious as to why it really matters. I've read my fair share of fiction, and have taken some chops to the chest while drunk. Based on that, I could fit in this group too.

Offline piperspitt

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Re: Should the Government control CEO compensation?
« Reply #9 on: June 07, 2010, 08:28:14 AM »
Who do you think makes up a company? It's not robots or hyenas, it's people and if people want to pay quality money for a quality CEO the people can do that.
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Re: Should the Government control CEO compensation?
« Reply #10 on: June 07, 2010, 10:12:03 AM »
Quote
The government can not violate the rights of a company

I'm sorry, but company's do NOT have rights.  People have rights under the constitution, but it does nothing to protect a company.

The US courts in the 1870s established that under the Constitution, a corporation is a person in a legal sense and has rights.

Who do you think makes up a company? It's not robots or hyenas, it's people and if people want to pay quality money for a quality CEO the people can do that.

I can understand what you're saying. The problem is that CEOs whose idiotic decisions nearly killed or did kill companies still got paid tens of millions of dollars regardless of how well they do. I would figure that if companies REALLY wanted to give CEOs an incentive, it would tie up the millions they receive into performance incentives, rather than just guarantee almost all the money they get.

Offline piperspitt

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Re: Should the Government control CEO compensation?
« Reply #11 on: June 07, 2010, 10:30:42 AM »
Negotiating with a CEO is a lot like negotiating with an athlete, sometimes you have to guarentee the deal. Sure some will work for incentives, but not most. Bad CEOs, like bad teammates need to be dumped sometimes. Keep in mind that while we are pissed about CEOs of bail out companies making bank anyway, only a minute percentage of CEOs work for a company that was bailed out.
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Offline y2zipper

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Re: Should the Government control CEO compensation?
« Reply #12 on: June 13, 2010, 07:00:50 PM »
Quote
The government can not violate the rights of a company

I'm sorry, but company's do NOT have rights.  People have rights under the constitution, but it does nothing to protect a company.

The US courts in the 1870s established that under the Constitution, a corporation is a person in a legal sense and has rights.

Who do you think makes up a company? It's not robots or hyenas, it's people and if people want to pay quality money for a quality CEO the people can do that.

I can understand what you're saying. The problem is that CEOs whose idiotic decisions nearly killed or did kill companies still got paid tens of millions of dollars regardless of how well they do. I would figure that if companies REALLY wanted to give CEOs an incentive, it would tie up the millions they receive into performance incentives, rather than just guarantee almost all the money they get.

Unfortunately the government has also established that you can't punish somebody for making idiotic business decisions as long as there's a "good faith effort" put forth by management.

As far as government control of CEO compensation, it depends on the situation. Generally I'd say no, but if a company's in a situation where they were bailed out or took a government loan, of the course the government should have some say. Of course, the government should attach that string when the bailout is negotiated in the first place.