I’m born and have grown up in Denmark. That is probably one of the important reasons why I tend to be in favour of companies where the difference between what the highest paid person in a company is paid and what the lowest paid person in the same company is paid is relatively modest.
In, for example, the United States of America, I now and then read about companies where the difference between what the highest paid person in a company is paid and what the lowest paid person in the same company is paid is very large, for example a difference in excess of factor 1:50. In this regard, I stumpled upon this interesting posting of December 17th, 2008 from Mr. Paul Krugman to which - up until now - more than 350 comments have been written.
What do you think promotes economic growth better: Companies where the differences between the highest and the lowest salaries are very large, let’s say above factor 1:50, or companies where the differences between the highest and the lowest salaries are relatively modest? Please explain why.
In, for example, the United States of America, I now and then read about companies where the difference between what the highest paid person in a company is paid and what the lowest paid person in the same company is paid is very large, for example a difference in excess of factor 1:50. In this regard, I stumpled upon this interesting posting of December 17th, 2008 from Mr. Paul Krugman to which - up until now - more than 350 comments have been written.
What do you think promotes economic growth better: Companies where the differences between the highest and the lowest salaries are very large, let’s say above factor 1:50, or companies where the differences between the highest and the lowest salaries are relatively modest? Please explain why.
Comments
There was a report on this in Kassensturz on October 17 2006. The report also mentioned that in some leading Swiss companies the difference between lowest and highest salaries increased as much as 267% from 2003 to 2005.