The Swiss in
their collective wisdom have voted to have the State determine the limits on
executive salaries paid in privately held companies.
Once you have
opened this door, where does it stop?
After ceding the right to determine executive salary caps to a faceless
bureaucrat, what makes the Swiss think they will stop there? No doubt there will be other industries
and professions where the State considers the participants to be overpaid, and
worthy of regulation.
This is yet
another attempt to implement State mandated ‘equality’ or ‘fairness’ that is
destined to fail. It is not
possible for this kind of ‘fairness’ legislation to take into account all the
variations that exist in the market, that go towards the makeup of executive
salaries.
However the Swiss
can now look forward to enjoying both minimum pay rates and maximum pay rates
determined by the State as part of an increasing intrusion of Government into privately
held companies and the market economy.
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