March 17, 2017
It has been expressed as a primary goal of this administration to encourage employment of American workers to the maximum extent possible in manufacturing and in other areas of business.
The total amount of money available to any given company for workers' salaries in any given year or quarter is a finite number. From this number must come the salaries of the highest paid as well as the lowest paid workers in the organization.
When an inordinate proportion of this finite resource is given out to one individual, it diminishes the amount remaining, which in turn reduces the number of workers who can and will be employed by the organization. For example, when a CEO is paid more than 100 times the organization's median wage, the direct result can be the elimination of several dozen jobs that could otherwise have been provided without additional cost to the organization. This is in direct conflict with the stated goals of the Trump administration. It also increases operating costs of the organization and reduces its profitability.
It should not be the task of government to prohibit exorbitantly high wages. However, requiring companies to reveal the degree of disparity in their wages provides, at no cost to government or industry, a useful incentive for companies to be thoughtful and rational in their utilization of the resources at their disposal, and such more thoughtful management is likely to increase the number of jobs available to American employees nationwide.