Open Letter to Congress Regarding Wages

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  1. Edward Ellison says:

    The peponderance of the cause, in my view, is boards of directors of the large companies suffering from three problems. First, they like their huge pay and stock benefits which flow from their relationship (sometimes insestuous) with the CEO. Second, They are all virtually members of the same “CEO Club” which means they want the same treatment from their boards as well, so they hyper-inflate compensaiton, earned or not. Third, most boards suffer from a huge case of lack of courage about doing what is right, including CEO compensation. Naturally, if CEOs are over paid, that runs downhill so all executives in that organization are overpaid. Overpayment for mediocre or poor results for the corporation is a constant in executive compensation for decades. It is doubtful the good old boys clubs will be broken up, directors will honestly evalutate CEO or boards will suddenly find courage in the forseeable future.


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