Posted by
Playful Walrus on Tuesday, October 19, 2010 7:30:37 PM
Michael Hiltzik writes a column for the Business section of the Los Angeles Times, and he likened CEO pay to that of City of Bell officials who were getting salaries that were extremely high in comparison to similar cities. His column
prompted some letters.
Richard J. Steckel of Santa Barbara:
Michael Hiltzik hit the nail on the head by pointing out direct parallels between the practices of Bell's administrators and those of some corporate leaders and their confederates on boards and compensation committees.
The difference is that corporations, unless they are unduly getting taxpayer money, are funded through completely voluntary transactions. People choose whether or not to buy shares in the corporation. City of Bell officials were deliberately hiding the truth of what they were doing with taxpayer money. Taxes are compulsory.
Fred Reiner of Granada Hills:
Hiltzik gives the same old vilification against highly paid executives of publicly traded corporations while ignoring Hollywood's top earners, as though they are exempt from the same accusation. Are Hollywood and the music industry off-limits?
They get a pass, for some reason.
James B. Davis of Beverly Hills:
Is earning too much money a crime? If so, how much is too much?
While you're at it, please explain why Ray Irani's compensation is any of your business.
Also, please explain why you're not upset about the much higher earnings of professional athletes. Is playing a great round of golf more valuable than running a multizillion-dollar company?
Good points.
Michael Napoliello of Manhattan Beach:
Companies pay the going rate for talent. Companies can only choose from executives who are available, able and willing to do the job. Executives with the qualifications to run a billion-dollar company — even those who sometimes falter — are a rare breed, as are their salaries.
I do think some corporate execs are overcompensated in that there are people who will do as good of a job (or almost as good of a job, or even better) for a lot less. But that's up to shareholders.
Hiltzik's argument against their salaries is nothing more than a trendy rant against free-market capitalism.
Yeah, which is not unusual for him.
Ideally, corporations are based entirely on voluntary associations and transactions. People choose to buy their goods or services. People choose to invest in the company or not. People choose whether or not to apply for a position in the company. Corporations do not have taxing power, fining power, jailing power, or use of force. To compare corporations to local government is to compared apples and
orioles.