THE SPINE SEPTEMBER 14, 2007
Another one for the banks of marble.
Robert Reich--the once-upon-a-time wunderkind, the soon-to-be disenchanted
labor secretary under Bill Clinton and now professor at UCal, Berkeley--has
written an argument for the Wall Street Journal: "CEOs Deserve Their
Pay." Yes, even the CEOs who go home with eight digit incomes and
retire with nine digit packages. Surprised? Bob Reich, egalitarian?
He makes the same arguments that defenders of the most rapacious capitalism
make, even for executives who take home not eight digit incomes but
nine. Like Terry Semel of Yahoo, pushed sideways long after his company
began to falter. There is an explanation for everything, even for those
execs who win their bounty by firing thousands of their employees. Jim
Cramer once suggested rightly in TNR that mass-fired workers should get
stock in their ex-companies because it's their travails that will push up
the stock price. None of that compensation in Reich.
So how do you solve the ever more ugly discrepancy between the
ultra-wealthy and the struggling lower middle class and even middle
"...the answer--for anyone truly concerned--is a higher marginal tax rate
on the super pay of those in super demand." This is lopsided, and won't