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Message: <blockquote data-quote="Dannyalcatraz" data-source="post: 8355576" data-attributes="member: 19675">Actually, you can.Anything that contributes to a company’s bottom line is something that can be evaluated.  Just like sourcing a raw material from Brazil Vs China Vs Spain, or how much labor regulations differ in regions where you have physical operations, how top-heavy your pay structure is- and how flexible adjustments to it are- are factors in international competitive ability.  The only question is how big the effect is.To be clear, it’s not just the uppermost echelons in play here.  Stratospheric compensatron packages for a company’s top tier are based on extraordinary pay for the next level down, etc.  Put differently, it’s not just that American companies have some of the highest executive pay for the CEOs, CFOs, etc., it’s that the curve of their wage structures are steeper than anywhere else.In the 1930s, American companies averaged a executive to entry-level wage ratio of @46-1.  Currently, we’re between 285 to 354-1 (depending on which industries were included in the researchers’ data), worst worldwide.  The other countries with similar ratios are places like India and China.  In contrast, other countries with healthy economies have vastly different ratios: Germany 147-1; France 104-1; Japan 67-1. Etc.When the recession hit the automakers hard a decade+ ago, 2 of the American Big 3 companies responded (in part) with layoffs and closing factories.  Executive compensation was not reduced.  In comparison, Toyota- then #2- cut salaries, even at the highest levels, even though said compensation was 1/5th to 1/10th that of their rivals.  (Their CEO mentioned in an interview that he had to tell his wife about what amenities- like the gardening service- would have to be scaled back or eliminated.)  They did NOT reduce their physical plant or labor force in any major way.  They’re currently #1.</blockquote>

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