Today Obama placed a limit on the pay of top corporate executives, at least for those of firms receiving the second round of TARP bailout money. The critics are claiming that the limit will make it difficult for corporations to recruit the best leadership. Currently, top American CEO's make an averabe of 350 times the average corporate salary. This compares with 20-30 times ratio in Europe and Japan. It is interesting that the current economic crisis started in the US where we have been paying too much money for too little expertise, but in Europe and Japan, they've had better corporate leadership for one tenth the expense.
That should be telling us something. We should can the lot of them and hire some people with hands-on practical experience who know without a doubt which end of the wrench fits the nut.
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