Monday, August 24, 2009

Salary Caps Already Work, Upgrade the CFR & Recompile Corporate Culture

So, you say that you like Whole Foods Markets? Maybe you're even long a small slice of WFMI in your fully balanced, non-speculative portfolio? Well, in either event, you already believe in and support Salary Caps that Work. Every time you shop, every share you hold, you are already voting for salary caps and Shared Fate:
Shared Fate
"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 times the average total compensation of all full-time Team Members in the company."
Yes, I've written on this topic before, but it's a fundamental message that requires periodic reinforcement.

The efficacy of Shared Fate in the Corporate Context is just one of many proven, empirical, objective justifications for serious consideration toward amending the U.S Code of Federal Regulations to include Salary Cap Ratios that ensure the benefits of corporate, collective human effort are reasonably circulated throughout the corporate body which created those benefits.

In short, it should be permanently illegal to see total compensation multiples of 400x or even 100x between a janitor and and genius trader. Sorry, genius trader, but in empirical existential terms, your 98% water, bloated sack of protoplasm, is of no more intrinsic value than anyone else's. You're made of the same sack of chemicals, knitted and knotted DNA, as anyone else. Your right to pathologically hoard ends at every other human's right to a roof, clothes, and 2,000 measly calories per day.

Oh, and in the ever so special case that you're among the Townhall Tantrum Tinfoil Hat brigade, just remember this instruction about any corporate body, from your own sanctified brainwashing:
"And the eye cannot say unto the hand, I have no need of thee: nor again the head to the feet, I have no need of you" (ICor1:21).
So, do the right thing because of your brainwashing, or do it because it's the only socioeconomically sustainable solution, moving forward; in either case, it appears that the current U.S. Code governing Corporations Improperly Accumulating Surplus is far too reactive in timing, subjective in application, and wasteful in attempting to track down perpetrators and holding corporations accountable for engaging in destructive multi-generational abuses after the fact. It is not only just too damned hard to be Robin Hood all the time; it's actually not necessary if we get the basic rules and principles right, in the first place.

Shared Fate is foundational to that objective.