Lester Golden
Dec 16, 2020

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Shareholders will like downward pressure on CEO salaries. This downward pressure would be institutionalized and made part of basic ESG benchmarks for investors if the indexation included intra-company Gini as well as the overall economy's Gini. Shareholders would be able to tell CEOs "your sky high salary is raising the company's tax rate, lowering after tax profits and dividends (payout ratio being equal), so move more of your compensation into long-dated locked up stock options and grant some of those to your employees to keep the company's Gini down.

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Lester Golden
Lester Golden

Written by Lester Golden

From Latvia & Porto I write to share learning from an academic&business life in 8 languages in 5 countries & seeing fascism die in Portugal&Spain in1974 & 1976.

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