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Monday, October 27, 2014

Romney as Precedent

The Globe Editors must have a very short memory.

In the dim and distant part, an attractive Republican with known managerial experience and progressive social values presented himself as a candidate for governor. He was elected and reelected for a second term.

However during his second term he developed national ambitions and shifted from his pro-choice, pro-gay position to the opposite end of the spectrum so as to appeal to  Republican voters in Red states..

Does the Globe really want the risk of history repeating itself.

Sent to Boston Globe

Sunday, October 26, 2014

CEO Compensation

The best way to close the divide between CEO pay and that of ordinary workers (Efforts to regulate CEO pay gain traction. Boston Globe, October 25th., 2014. G1, G3)  is to share the bonuses. After all, every employee from janitor to CEO has contributed to the firm's success, so they should all share the rewards.

Set up a salary system with appropriate differences between each level in the organization then, at year's end, give everyone the same percent of salary as bonus. CEO's will still get more money than janitors but all will get a compensation boost.

We don't need legislation; his is the fair way to do it.

Sent to Boston Globe

Wednesday, October 8, 2014

The next war: Financing

Linda Bilmes is right -- we do not have a game plan for the financing of the next war on evil. We need one. I would suggest a surcharge of ten percent on all income taxes. This will have minimal impact on the poorest among us but will raise an adequate amount of money from those able to afford the extra taxes.

Alternatively, we could make the surcharge refundable when the payer pasees 70. This would enforce saving for ones old age but that would not amount to much for the poor who need it most. So it is not quite a win-win.

Sent to Boston Globe

CEO Compensation

Mr Sirota (letters, October 8th. 2014) links two things that do not need to be linked at all.

The first is the pressing need for the public sector to afford all the things hat we, as citizens, have demanded that it do. This means more income for government. Higher taxes on income might be one way of doing that. Alternatives include taxing financial transactions which I support, or changing the expenditure side by cutting back on subsidies to corporations (which I might support)) and entitlements like Health Insurance or Social Security, which I do not support.

The second is the ratio of an employees wage to that of the top executive. Mr. Sirota is right, the CEO is not in the set of people to which the ordinary worker compares his or her self. However, he ratio has got out of hand. One solution to reducing the inequality would be for firms to adopt a policy in which when bonuses are issued to top managers an equal percent bonus also be issued to all employees. After all, each in their modest way has contributed to the overall success of the firm.

Such a policy would, I believe, enhance morale in the firm.

Sent to New York Times