[stalin]

Some countries have laws governing the percentage of the average workers salary that an executive can have. I don't see any reason that would be harmfull but I would prefer it if investors would do the same job by voting with their dollars.

Don't invest in a company that pays their executives too much. The probem with that is the companies don't seem to care. The price of the stock goes down and executive pay goes up anyway.

It is human nature to get what you can in the short run and screw everyone else.

[Lee_Atwater]

Some countries have laws governing the percentage of the average workers salary that an executive can have.

I would not suggest emulating such countries. Wage compression may eliminate incentives for a worker to enhance the value of his human capital that would lead to more responsibility etc. This will lead to a stagnant firm...lots of stagnant firms will lead to low macro growth. Perhaps if you really thought about, you would see the harm.

Invest in companies where you can get a great return. Executive pay is an afterthought for an investor (cometition for high level managers is always fierce - would I like to have a top marketing exec to work for my small firm...you are damn right I would!!!! - but I can't afford it). Good companies will emerge from bad times although their stock is down now - I have no idea who they all may be. It just that now, there will be people who don't know anything about economics, finance etc who will look for scapegoats because they lack an understanding of what the hell happened in the last 3 years.