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https://evonomics.com/milton-friedman-doctrine-wrong-heres-rethink-corporation/>
"The problem isn’t that the political system doesn’t want to deal with
excessive CEO pay. There have been any number of formal efforts to rein
in executive pay, involving a host of direct regulation and tax changes.
But most of the specific efforts to reduce executive pay—through major
policies such as a limit on the tax deductibility of high salaries, as
well as more modest accounting and disclosure legislation—have fallen
short. That’s because the story of skyrocketing executive pay is a story
about our conception of the corporation and its responsibilities. And
until we rethink our deepest assumptions about the corporation, we won’t
be able to master the challenge of excessive CEO pay, or the inequality
it generates. Is the CEO simply the agent of the company’s shareholders?
Is the corporation’s only obligation to return short-term gains to
shareholders? Or can we begin to think of the corporation in terms of
the interests of all those who have a stake in its success—its
customers, its community, and all of its employees? If we take the
latter view, the challenge of CEO pay will become clearer and more
manageable."
Via Kevin O'Brien.
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
