Salary Cap for Publicly Traded Companies....

On the morning radio show I listen to on the way into work, 106.7 KBPI, they had a discussion about a million dollar salary cap on executives with callers giving their opinions, so now I would like to voice mine.

First off by limiting the salaries of the higher ups it would not translate to increased wages for the lower rungs as I have heard some say but I think I have a novel approach below that would increase everyone's wages.

I think a million dollar salary cap would be a good thing on publicly traded companies employees including board members, executives, salespeople, secretaries, dock workers, janitors, etc. basically.....everyone. If you own your own business this would not pertain to you, you can make as much as you want, this is only for those companies that have stock traded on any of the major indices. The way I look at it is if you want to make more money as an executive or for that matter any employee of that company you would have to buy your companies stock to receive a dividend to increase your yearly income. The executives would also have more at stake in that they would have to be invested in the company they are running and if they screw up their net worth would dimish giving them incentive to do a good job and watch what their subordinates are doing. Anyone could buy the companies stock so everyone could enjoy a larger income by just purchasing shares of whatever company you thought would do well in the year or the coming years. It would force the executives to run their companies better to make a profit so that they could reap the benefit of the dividends and at the same time it would increase the incomes of everyone in the company as long as they purchased company stock. No more bonuses for just those at the top, bonuses for all when the dividends are announced.

And as far as these companies we've bailed out as the taxpayers we now own these companies and we the taxpayers should get the dividends if these companies ever become profitable again in the form of tax reductions on our 1040's divided up by how much in actual tax you pay. If you pay no taxes then no deduction, if you pay $8,000 in taxes you would get a smaller percentage than the taxpayer who pays $40,000 in taxes.

Well that's just my opinion, I could be wrong.....