Contributed by Pamela Haines
The moral imperative for a minimum wage is clear. But what about a maximum wage?
It’s not hard to make the case that something needs to be done. Back in 1965, US CEOs in major companies earned 24 times more than the average (not minimum wage) worker. A typical American CEO now makes 380 times more than the average worker.
Around the world, change is in the wind. An Egyptian ruling that a maximum wage in the public and government sectors be no more than 35 times the minimum wage has been in force since January 2012. France’s president last summer promised to cap the salary of company leaders at 20 times that of their lowest-paid worker. In February, new code amendments of the German Corporate Governance Commission, which all German companies follow, were released, including a mandate that all publicly-traded firms place a cap on executive compensation. While the specific executive pay maximum is left up to each corporation, the Commission made it clear that current pay levels have soared too high.
The immorality of our current situation is clear. Perhaps the time has come in the US to talk about a maximum wage as well.