How does allowing corporations giving their executives multi-million dollar salaries help create jobs or stimulate the economy (they earn more than they can spend)? Why not use the money for company expansion or giving workers living wages?
by 
8 Jan 2004-10 Dec 2009
ANSWERS: 3
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That's the biggest flaw lies within the policies of big corporates.They think giving hansome packages and perks to the higher management can make the company climb the Stock's ladder.The condition of the workers remain as wreched as ever. Only way it can stimulate the economy is to tax the guy's heavily by Obama's principles of taxation.On a long run this method won't be fruitful due to lack of motivating factors among the workers who work on a very flat wage. Telling you for an instance ,in my previous company which was a MNC the workers were paid as less as $5/day where as the higher managemant guys used to draw a salary of more than half a million USD a year. The company is on a verge of collapse due to widespread recentment among the workers. The philisophy of 5 managers/worker doesn't make a sense at all.
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It doesn't. Execs merely justify the unjustifyable by saying they have to pay top dollar to get the top managers. Saying that however, conveniently ignores the fact that the bulk of profits go towards expanding the business and rewarding the shareholders, making them the chief beneficiaries of the companies profits. At the same time, shareholders have the power to get together at the companies AGM and vote with other like minded shareholders to sack the managers involved. Ultimately, it is the failure of the shareholders to keep these sky high bonuses in check, but this fails to materialise mainly through ignorance of the shareholders to their rights.
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If the shareholders see that the executives are getting such a large compensation, then they are assured, or given the assurance, that the company is doing well. How else could the business afford to pay so much if they weren't doing great, right?...
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