In the News (from The Guardian): “Germany passes law imposing limits on executive pay” – Germany’s lower house of parliament, the Bundestag, on Thursday approved a law, which will place restrictions on executive pay. Chancellor Angela Merkel’s coalition of conservatives and Social Democrats (SPD) hope the law will encourage firms to focus on long-term performance rather than short-term gain.
If management board members are held liable for damage to their firm, they can be made to pay for this out of their own pocket. The figure will total at least ten percent of the damage, but no more than 1.5 times their fixed annual salary.
My Comment: These measures will not help because until egoism is corrected, people will use all possible means to circumvent the laws which limit their egoistic fulfillment, even if this fulfillment is counter to common sense. It is impossible to go against Nature despite common sense, but it is evident that restrictions of personal maximum pay are beneficial for someone on a personal level!
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