Executive Pay Is the Skeleton Key

Here’s how they do it: wages + taxes + benefits + overhead. So, if an employee is paid, let’s say, $12.00 an hour, taxes and Social Security and workers’ comp and so on add, say, 30%, that puts us at $15.60 an hour. Then add the health care plan, the 401(k) matching contributions, the Christmas bonus, etc.—let’s say that calculates out to another $

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The fact that many American companies are paying paltry wages to workers while lavishing cash on top executives and investors is no happenstance. It's a policy choice. In the United States we have a tax and regulatory environment that rewards that behavior. We can decide to maintain the status quo or change it.

-What will be your source to determine compensation? Is it market based? person based? or internally augmented marketplace? who decides the rate?

Most humans are either overpaid or underpaid for their work. I am not talking about minimum wages or fair salaries. I am talking about the fact that two employees in the same company can earn the same salary even though one of them contributes much more than the other to the company's overall success.