The recommendations the article had made a lot of sense:
The report concludes with an outline of four theological values that the authors consider useful in discussing executive salaries.
- A concern for the poor. They recommend that investors should be more concerned with helping the poor than putting restrictions on the rich, and so they should be more active in ensuring decent levels of pay for those at the bottom end of the scale.
No theological principle will give us an answer to what the maximum pay should be, the report affirms. What we can do is focus on the ratio of the maximum to minimum salary levels in a company.
Just pay. At the same time the report affirms that an appeal to have unrestricted pay policies is contrary to distributive justice. So once more the authors of the report recommend that investors should examine the ratio between top executive pay and the average pay of the lowest 10% of employees. The authors of the report consider that it is hard to justify a maximum ratio of more than 75 times. As well, the report calls for salary packages to be made simpler and more transparent.
The dangers of wealth. Using high levels of pay to attract executives can lead to them being disproportionately likely to put their own financial interests ahead of those of the company and its shareholders.
Good stewardship. Remuneration levels should be based on long-term performance and appropriate attitudes toward risk…[/INDENT]
You will note that the first recommendation is that investors concern themselves with raising the pay rates for the bottom end of the scale than with placing restrictions on the top end.
You will further notice that they identified no specific theological principle addressing what a maximum pay is, only one addressing the lower end.
Further, you will note that this report called on **investors **to do something, not for governments to do something. That is really important, as any other solution set would violate the principle of subsidiarity.
There is one problem not addressed, at least in this report. That is, the impact of institutional investors (e.g., mutual funds, union retirement funds) on how businesses are managed.