A Swiss referendum to cap executive pay at 12 times the lowest paid employee’s salary has failed, rather dramatically, with 65 percent of the population voting against it. Hopefully this will be a signal to the rest of the world that this is a bad idea.
Sure, it sounds fair that no one should earn more in a month than someone else in the company earns in a year — the idea being that with such a restriction the wealth would be spread around a bit more. John D. Sutter at CNN
called for the U.S. to examine the idea of limiting the wage gap between the highest and lowest paid. He is in favor of “tethering top executive pay to SOME sort of concrete metric,” which, he argues “might stop American execs from floating further into the stratosphere.”