Ross Perot on Corporations

1992 & 1996 Reform Party Nominee for President

Top US executives overpaid compared to foreign competitors

In Japan, the upper level managers earn about 18 times more than the average Japanese worker. In Germany, it’s about 25 times. In the US, the upper level managers in our largest corporations get paid almost 120 times more than the average American worker earns.

Theoretically, the compensation of most upper level management in US companies is tied to the performance of their company. But in fact, bonuses get paid even though the company didn’t have a good year. That’s not good for the companies; that’s not good for stockholders; that’s not good for the country. It may be time for board members to exercise a lot more discretion when determining compensation for the managers of our domestic companies.

If these management guys want to make the really big bucks, they need to be TV anchormen, basketball players, or rock stars. Overpaying company executives damages morale and splits the team. Our overseas competitors understand this.

Source: Not For Sale At Any Price, by Ross Perot, p. 77 , Jul 2, 1993

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