Everyone talks about the minimum wage. But what about a maximum wage? Why not identify a maximum amount you can pay a CEO, President or other executive of a company.
If we create a maximum amount an executive can be paid, based on the salary of the lowest-paid employee, say 5, 10, 30, even 50 times more, it will give employers an incentive to increase the salaries for their lower-paid employees.
Currently, many executives are getting paid based on their ability to cut costs and reduce staffing.
If the lowest-paid employee makes $10 per hour, or roughly $20,000 per year if they work full time, an executive making 50 times that salary, the executive could make up to $1 Million per year. If they raise the minimum wage to $15 per hour, the executive’s salary could go up to $1.5 Million.
But what about the extra money that is currently being paid in executive salaries and bonuses?
It could be used to help pay for the salary increases, to hire more employees so the organization can provide better service, or maybe even to grant paid childcare or parenting leave so their employees could afford to continue working.
Or, the company could lower prices so more people could afford to buy their product, raising overall income.
Just a thought.
NOTE: Previously posted on Others Are People Blog. Photo by Avery Gonzales