High Salaries

The Washington Post columnist Sally Jenkins raises important issues regarding striking a balance between salaries and layoffs. The piece asks whether it is ethical to pay people exorbitant sums of money while at the same time laying off workers  from the company.

Even if we do accept that some people are simply more valuable than others in the work place, how much more does that entitle them to be paid.

CEOs have made gazillions in salaries and incentives but only partially because of their work skills. Hell, many showed they lacked the skills to make companies viable. They got their deals because of the tight-knit network of Board of Directors memberships, and the ability to do favors for the wealthy and connected.

Athletes are somewhat different because they are physically attached to the presentation of the product as well as the salesmen. They also have a limited career time frame. I applaud their ability to get paid but I also question the size of the payments.

Not that the monies saved in salaries and benefits from CEOs and athletes ought to go into the owner’s pockets. No, one of the things that astute observers such as Kevin Phillips have noted is the lack of investment by corporations in product development. The people losing their jobs in labs and offices and  in team offices are exactly the kind of workers needed to pursue product development as well as help the economy.

The Jenkins piece makes the important connection between salaries, profits and costs for the products. Both corporations and teams charge too much to purchase their products.  As the economy continues to slide throughout this year, more and more people will not be able to afford tickets.

Then won’t we all wonder about the public financing of the new Citifield, Yankees Stadium, Cowboys Stadium and Nationals Stadiums. How much does any one person or group of people deserve to earn? How much do these people need to have? When do they need to look around and determine the cost that is associated with their earnings? This is the character question that I featured in an earlier post.

Hasn’t Obama been trying to highlight this question of responsibility and community as opposed to personal focus and acquisition. Maybe this is the focus for the next four to eight years as we each right our own moral compasses.

Reblog this post [with Zemanta]
Advertisements

4 comments so far

  1. 74 on

    Finance News And Facts…

  2. 1390 on

    Debts and Money Advice…

    A hospital spokeswoman […]…

  3. 72 on

    News Headlines On Finance…

  4. […] High Salaries « Bohemian Yankee in the CapitalCEOs have made gazillions in salaries and incentives but only partially because of their work skills. Hell, many showed they lacked the skills to make companies viable. They got their deals because of the tight-knit network of Board of …  read more… […]


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: