Thomas Sowell's perspicacity:The money that can be saved by limiting CEO pay is chump change compared to the money that can be lost because you cannot attract top-notch talent.
Read the whole article.
Congress itself is a classic example of what can happen when penny-wise policies restrict the caliber of people who can be attracted.
No top-level doctor, lawyer, economist, engineer or CEO can become a member of Congress without taking a big pay cut, perhaps costing that person's family millions of dollars over a lifetime.
On the other hand, if you paid every member of Congress a million dollars a year, it would cost less than the cost of even a small government boondoggle, much less a whole agency.
It is not that the turkeys in Congress today deserve a raise. They don't even deserve their current pay. But that is the very reason for attracting different people. Cheap politicians are actually very expensive and the same principle applies to CEOs.
Monday, September 29, 2008
Cheap politicians are actually very expensive and the same principle applies to CEOs.
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