>> Rick, i think it really depends where the company is located. Even in the list the companies like ST have lower pay than companies like Intel.
Sure - the EU firms are more tightly managed than the US counterparts. Largely, you do not need a lot of money to live in Europe since most are socialized. It is over here in America do you need so much more. You can have a big car and yet no space to park it in London. I think European firms are modestly in better shape in terms of CEO pays than US firms.
CEO pay is high all over the world. This inspires me more than anything they write in company documents. When one may can make $7m and in the same month 200 are fired to cut cost, it tells me that only in politics is man = one vote. In business, it is not that simple.
Very good question and truly the best one in a long-time. The answer is NO Comparsion. I get paid in dollars, my CEO is Compensated. Besides the money, his son's startup is now a supplier. I mean there is no benchmark for comparison
Anon, I too was laughing at the first line. More like: "yea right!". I am very happy to have a job and do wonder about the cost effectiveness of higher CEO saleries. It seems that if they trimmed a few million off then the company could hire a few people to get the job(s) done, better or faster or safer or with less stress on the employees. That said, running a large corporation takes a certain set of skills, both personal and technical not everyone can do it well. I would love to try though....!
I think that if the saleries were capped then all it would accomplish is either lower quality management (flight to privately owned companies) or better bottom line for the company. No where did it say that capping the exec's pay increased the workers compensation or improved the workplace. I do wonder what are we trying to accomplish with the cap: fairness? equality? vindictiviness? Not sure that any of those would be accomplished. I am still a fan of the free market and expect in the long run (not short term or in all cases) things even out.
I don't know how much faith we can really put in CSR, given that companies openly speak of the bottom line as everything to them. There is a responsibility but not when it comes into conflict witht he corporate bottom line. Anyway, you raise an interesting question by pointing out that engineeers often, when left alone, get to the heart of the matter. How eactly would engineeers deal with this problem? Would they force CEOs to take a pay cut or cap future CEO salaries? Would they allow the current system to run as it is in spite of what some say are issues of common sense, fairness, and decency? Obviously, some would be in one camp, some in the other--but about how many on the average? Maybe we should take a poll somewhere of engineers asking them how they would deal with the disparity in CEO to average worker pay or if they would deal with it at all.
@Dr. Marty: good comments... CSR with executive compensation would be a good idea but it is at odds with the financial goals of a company. Public companies' first goal is satisfy the shareholder expectations BUT if you make that dependent on satisfying more groups including the society at large, then one could hope for meaningful change. How ever, governments should not legislate CSR, instead promote that as a substitute to restrictive legislations! Looks like 'voluntary' CSR will be the status quo for a while!
I would be proud to second it! Reminds me of the bygone Sprint commercial where the firefighters are expediently resolving a city hall issue on clean drinking water. If things were left to us engineers, we tend to get to the heart of the problem right away and find a solution!