October 19, 2010
Dear SEC Chair
In addition to the point made about a level playing field for shareholders regarding File No. S7-14-10, in which I support the right of shareholders to have a vote on excessive Executive Salaries, I have a few other reasons which I feel should be considered.
1. We live in a global economy. The costs of any business, including executive pay, are ultimately reflected in the products and services of their company. Lets not price ourselves out of the marketplace.
2. Shareholder value. Profits from any business are ultimately distributed to shareholders. Since it is my (our) money that is supporting that organization we are entitled to a reasonable share of that net income. The more paid to executives the less there is for shareholders. There is a trade-off here.
3. As a consumer, we buy the products and services the organization provides. Unrealistically high executive pay ultimately increases the cost of their products and services. No wonder, when we can buy a cheap knockoff, we do so at the expense of the company in question. Let us not price ourselves out of the global marketplace.
4. Unrealistic pay, risky business decisions do not make a good manager. In my mind, that person (those people) are P-poor managers. In a global marketplace the opportunities for sales are enormous. The competitively priced product at the quality level the consumers desire will have no end of opportunities for sales and profits. Sooo... we are now back to item 1.
There is no need to be greedy A good executive should be more concerned about the company future than his/her own pocketbook. Stockholders should have a say in executive pay.