Friday, January 9, 2009

Shared Fate Capitalism

"We recognize there is a community of interest among all of our stakeholders. There are no entitlements; we share together in our collective fate. To that end we have a salary cap that limits the compensation (wages plus profit incentive bonuses) of any Team Member to nineteen (19) times the average total compensation of all full-time Team Members in the company."

Corporate Policy of Whole Foods Market, Inc. (WFMI).

Recent programs on NPR featured economists citing average existing salary spreads are 20x to 30x throughout Asia, about 50x in Europe, and 300x to 400x in America. Can you say Unsustainable Resource Skews? I thought you could. :-)