Paying less to workers to pay more to management
How is that possible? One of the ways is like what Wall Street was doing. The top management just pays themselves crazy. But this is not serious then as the financial institutions were churning up big profits and the workers were small in numbers. Put this into the context of manufacturing companies or any large organizations with a big worker base. The amount paid to the top management must come from the general pool of money available for payout. The more being paid to top management, the lesser will be available for the workers. Yes, it is a zero sum game. In the same way any organization that pays big bucks to the top must get the money from somewhere. Normally it comes from paying less to the workforce in general. Organisations that pay their top executives big salaries must find ways to boost up the kitty every month. It either comes from higher cost to their products or services, or from paying the workers less. As simple as that, unless money can appear in mid air. The consumers pay for everything. The workers indirectly pay for the top dollars of their management. True or not?