Oy. Let's try this one last time:
If you have a public entity that caps its executive salaries, they will not be able to compete effectively for top managerial talent against private entities that can pay whatever they want. That is assuming the caps are below the "market rate" for such talent. If they arent below that market rate, then what is the point of having them?
I think your understanding of the job market and executive pay is the thing you were sold a bill of goods on. Executives at that level are under tremendous stress and basically have no lives. They are interested in making as much money as possible. If they weren't they would go into government. And the best execs also produce the best results for their companies, and so are well worth their salaries.
But you haven't answered the objection that a public entity still has to contend with the statistical realities of insurance.
I disagree with you....you have been sold a bill of goods....there are plenty of QUALIFIED ceo's out there that could whoop that ceo making 100 million a year's butt and then wipe the floor with it.... the ONLY reason is because the boaqrds and ceo's are in cahoots together...board members are just CEO's from other companies whose business does not conflict...they all run in the same circles and they are the ones who did THIS...make it where ceo's get so much more of the pie than previously when they were making 100 or 200 times the average worker to now nearing 400 times the average worker.
Goood smart people who are not greedy are out there to be had.....more transparency in the hiring practice to the shareholders and disclosure of deals to them might actually curb the board or some sort of rules put on to the board to prevent them from giving their ceo buddies the world and more on compensation and exit deals....
Shareholders are clueless on what is being stolen from them, and the ones in the know, are just ignored.....until something bad happens...
all the shareholders in 401k's are more than likely not the ones paying attention but the ones that rely on their fund managers....they are being ripped off imo, by these huge salaries...no where in the EU would they get their salaries or in Australia...
There is always a limit to what one should pay for any position and not just lower level employees, but every position....including the CEO.
While there can be and is abuse in general people get paid what they are worth. How much was Jack Welch worth? The man made hundreds of millions of dollars, maybe more, for GE's employees and shareholders. You don't replace someone like that too easily, as Immelt has discovered.
No one takes a job like that out of public service.