I would like a law

[lynxreign]

It is a simple law.

No employee of any company at any level can make more than 100 times the lowest paid employee of that company.

You're paying someone $20,000 a year, then you can make 2 million a year. Want a raise? You have to raise the salaries of the lowest paid employees.

Now, tell me why you don't like my law.

Comments

We're witnessing how that part of the market has completely failed.

[chaoticmoth.livejournal.com]

A large part of what failed is how stocks function. If you want to put in a law that is going to legislate anything, why don't you regulate the prices of stocks? Make it so that stock prices are a direct reflection of reality and not based on emotion and wild speculation. If your company has X earnings, with Y profits your stock is priced at Z.

[lynxreign.livejournal.com]

Part of my plan indirectly does affect how stocks function. Currently stocks and CEO salaries are the primary focus of a company. The primary focus SHOULD be customers and employees. This redirects at least part of that. If CEOs are forced to choose between themselves and stockholders they'll pick themselves every time.

[chaoticmoth.livejournal.com]

But you still have wild speculation and business decisions made to influence stock price instead of the bottom lines for the business.

If you directly legislate stock prices being tied to the bottom line then people who want to increase the stock price have to focus on the business. No more fluctuations based on projections, no more company stock values dropping because they made a huge profit but came in below expectations, just a simple formula of "We did well, and our stock price shows it" and "We did poorly, and our stock price shows it".

[lynxreign.livejournal.com]

OK, so formulate your own law for that aspect of it. I don't think many business decisions would be made to influence stock price and only for that reason under this system.