Facts and flaws of the CEO pay ratio

You may soon read or hear media reports about a “CEO pay ratio.” Let’s look at the facts and flaws of this ratio. What is it? Each publicly traded US company is required to publicly disclose the CEO pay ratio. This requirement was included in the massive 2010 Dodd-Frank financial legislation, although it was delayed … Continue reading Facts and flaws of the CEO pay ratio

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Crony Capitalism ≠ Capitalism

One reason people don’t like capitalism is because they think it is unfair. One reason people think capitalism is unfair is because they believe that crony capitalism is the same as free-market capitalism. It is not. In fact, crony capitalism is closer to the opposite of free-market capitalism. What is crony capitalism? Crony capitalism is … Continue reading Crony Capitalism ≠ Capitalism