THE PRICE IS PRODUCTIVITY: WAGE JUSTICE IN THE UNITED STATES

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Abstract

Wages, especially recently, have become a very controversial topic. In terms of wage justice, the debate becomes more controversial due to the ambiguity surrounding the factors that determine a fair wage. Obviously, no intelligent, savvy CEO will pay his or her employees more than they produce for the company. Were this to occur, bankruptcy would be the inevitable result. However, a debate occurs when discussing how to reconcile wages with profit. Companies want to maximize profits, while employees want to maximize their personal wage earnings. A seemingly easy solution would be to pay employees according to their productivity levels. If an employer were to pay every employee exactly what he or she contributed to the company, the company would make no profit; therefore, the businesses would have no incentives to produce their products.

Keywords: CEO, Board of Directors, Corporate Governance

How to cite this paper: Matherne, D. (2008). The price is productivity: wage justice in the United States. Corporate Ownership & Control, 5(2-1), 207-211. https://doi.org/10.22495/cocv5i2c1p9