1. "CEO cut $1.35 million pay to raise employees' wages - AsiaOne Apr 19, 2015
"The market rate for me as a CEO compared to a regular person is ridiculous, it's absurd," said Mr. Price, who started the Seattle-based credit-card payment processing firm Gravity Payments in 2004 at the age of 19.
The CEO had read a report by Angus Deaton and Daniel Kahneman, a Nobel Prize-winning psychologist, which said that "the emotional quality of an individual's everyday experience, the frequency and intensity of experiences of joy, stress, sadness, anger, and affection that make one's life pleasant or unpleasant rises with income, but only to a point."
According to The New York Times, that point turns out to be about US$75,000 a year. Now, let's all wait on the world to follow after Mr Price's footsteps."
Lessons for me are:
1. significant that the debate about the gaps between the CEO and the lowest paid employee in the same corporation can be as wide as 300 times is continuing to be raging in the USA, the capital of capitalism! It means the majority is beginning to doubt this 'pay as much as the market can pay' philosophy and that a star CEO is equivalent to a thousand employees myth!;
2. while greed can be a driving force. Too much greed surely will be a destructive driving force eventually cannot be denied. Yes? In this case, can the individual exercise the ability to realise that perhaps been paid beyond a certain point, the marginal return of happiness, etc will drop NATURALLY? Will this create 'laziness and inertia' NOT to seek growth?;
3. with our late ex-PM/SM/MM Lee's legendary frugal lifestyle, what would he say truly about the need to 'pay high salaries to keep off corruption' from the government officials? Does corruption comes from the individual inability to recognise been paid beyond certain point will bring diminishing marginal return of satisfaction, happiness and other good things?
For me, pay structure must be sensible. Folks like JP Morgan and other giants of capitalistic USA past had recommended not more than 20x or 30x of the lowest paid employee. I am willing to go a bit further. Let the FIXED pay be no more than 20x or 30x of the lowest paid employee BUT share the VARIABLE BONUSES with ALL equally as long as the Company makes real profit after taking care of the 'agreed capital amount to be set aside for the next 3-5 years investment'.
"The market rate for me as a CEO compared to a regular person is ridiculous, it's absurd," said Mr. Price, who started the Seattle-based credit-card payment processing firm Gravity Payments in 2004 at the age of 19.
The CEO had read a report by Angus Deaton and Daniel Kahneman, a Nobel Prize-winning psychologist, which said that "the emotional quality of an individual's everyday experience, the frequency and intensity of experiences of joy, stress, sadness, anger, and affection that make one's life pleasant or unpleasant rises with income, but only to a point."
According to The New York Times, that point turns out to be about US$75,000 a year. Now, let's all wait on the world to follow after Mr Price's footsteps."
Lessons for me are:
1. significant that the debate about the gaps between the CEO and the lowest paid employee in the same corporation can be as wide as 300 times is continuing to be raging in the USA, the capital of capitalism! It means the majority is beginning to doubt this 'pay as much as the market can pay' philosophy and that a star CEO is equivalent to a thousand employees myth!;
2. while greed can be a driving force. Too much greed surely will be a destructive driving force eventually cannot be denied. Yes? In this case, can the individual exercise the ability to realise that perhaps been paid beyond a certain point, the marginal return of happiness, etc will drop NATURALLY? Will this create 'laziness and inertia' NOT to seek growth?;
3. with our late ex-PM/SM/MM Lee's legendary frugal lifestyle, what would he say truly about the need to 'pay high salaries to keep off corruption' from the government officials? Does corruption comes from the individual inability to recognise been paid beyond certain point will bring diminishing marginal return of satisfaction, happiness and other good things?
For me, pay structure must be sensible. Folks like JP Morgan and other giants of capitalistic USA past had recommended not more than 20x or 30x of the lowest paid employee. I am willing to go a bit further. Let the FIXED pay be no more than 20x or 30x of the lowest paid employee BUT share the VARIABLE BONUSES with ALL equally as long as the Company makes real profit after taking care of the 'agreed capital amount to be set aside for the next 3-5 years investment'.
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