Don Ulrich: Restricting CEO pay would be socialism
Re “CEO pay gap is exactly what we feared” (Our View, Aug. 10): Corporations are owned by stock holders. Stock holders vote for and select a board of directors, who seek and select the best CEO they can find. The selection process is much like the bidding that goes on for top athletes in professional sports. The board offers salary and incentives that they feel will acquire the individual that will lead their corporation to greater profits and success. In spite of the large salaries quoted, these salaries are justified by the profit improvement the corporations make with a successful CEO. For many companies there is also profit sharing plans that also improve the employee’s income.
Why does The Bee feel that there should be a limit on these salaries based on how much the employees make? If the CEO’s opinion is that higher employee salaries will improve his corporation success, it should be done. We don’t need more government telling private corporations what to do. The Bee’s view is socialism, pure and simple.
Don Ulrich, Denair
This story was originally published August 11, 2015 at 11:49 AM with the headline "Don Ulrich: Restricting CEO pay would be socialism."