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Daniel Marques

Biomedical Scientist,

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Should/Could a maximum wage be introduced; A limit to how high the highest earners can make?

The gap between the highest earners and the lowest is too great. John S Lewis said, "Capitalism has done enormous good...but the perversion has given us too unstable a society. Differences of reward must be large enough to induce people to do their best but the present differences are too great."

Some humans are paid (or pay themselves) over 1000 times the wage of their workers, and orders of magnitude greater still than the vast majority of the world. The risk and effort of such jobs have been attributed to some of the reasons to this but I argue that these people would not suffer too greatly if they did not give themselves or were given millions of pounds. Further more, I don't believe any individual human, from their actions, is deserving of such vast amounts of wealth (short of saving the planet from certain extinction).

Perhaps a maximum wage could stop situations where greed consumes those who are after the next big bonus, no matter what effect their decisions may have on others.

What seems like a reasonable maximum? £200,000, £500,000 a year perhaps?
I know there will be some who are strongly against this. But even if the amount was more, setting a limit may help reduce the enormous wage gaps of CEO's/ managers and their workers which is grossly unfair. Consider it for a moment, or perhaps a similar idea is available.

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  • Aug 31 2011: Yes, reducing wages with a wage cap would put a stop to CEO's insane strategies to temporarily raise profits so that they can get obscene bonuses by scuttling the company, something which should be a crime but isn't because their fellow CEO's cover their backs until the whole thing blows up like ENRON. The money would instead go to higher profits that would increase investor return. Of course this still does not make it a done deal. CEO's will find other ways to profit themselves. Perks and company expenses are not wages and will certainly be misused to fill in their wage gaps.

    CEO's are more concerned with their pockets than with company finances. This is because they actually don't do much. They decide on a strategy and then bet the whole company on it. If it works they get huge bonuses, if it fails they get huge bonuses. They don't actually have much control over company profits but they do have control over their own profits. If CEO's were doing their jobs right the world would be filled with Steve Jobses and Apple like companies. Yet most companies are doing business as usual. Do CEO's make that much of a difference?

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