A modest proposal regarding executive compensation and pensions #OWS
I just read an item quoting the C.D. Howe Institute that Ottawa is understating the problem of underpaid pension obligations. Juxtaposed with it was an article on the Occupy movement's objections to excessive executive compensation.
Let's solve this; let's tie executive compensation to pension contributions... say, off the top of my head, that total remuneration to executives for a corporation can not exceed 10% of pension contributions for that year. This aligns the interests of management and labour; long term security for labour means high earnings for management, and instability for the rank-and-file means ineffective bosses get crumbs.
-- Steve thinks this makes a lot more sense than tying it to something as ephemeral (indeed, almost whimsical) as share price... and the added stability would probably help boost share value over the long haul, which would make other pension plans more secure too.
Let's solve this; let's tie executive compensation to pension contributions... say, off the top of my head, that total remuneration to executives for a corporation can not exceed 10% of pension contributions for that year. This aligns the interests of management and labour; long term security for labour means high earnings for management, and instability for the rank-and-file means ineffective bosses get crumbs.
-- Steve thinks this makes a lot more sense than tying it to something as ephemeral (indeed, almost whimsical) as share price... and the added stability would probably help boost share value over the long haul, which would make other pension plans more secure too.