Abstract
This paper addresses the large and growing pay gap between executives and employees in large corporations by considering the need for a private sector maximum wage law in the United States. The first section of the paper presents evidence that suggests the United States has a large pay gap compared to other countries and that the pay gap in the United Statesis growing over time. The second section of the paper presents a review of court cases and legislative actions that include the ineffectiveness of derivative lawsuits, the lack of new legal doctrines to address pay gaps, the general failure of the nonbinding say-on-pay vote to limit pay,the success of pay limits in the public sector, and various maximum pay laws that exist in different countries. The third section of the paper presents arguments for and against a private sector maximum pay law in the United States. The fourth and final section of the paper leaves the reader to decide if it is time for a private sector maximum pay law in the United States.
Recommended Citation
Bryant, Natalie P.; White, Michael R.; Newman, Christine M.; and Newman, Joseph A.
(2022)
"Maximum Pay Laws: Is it Time?,"
Journal of Business, Industry, and Economics: Vol. 27, Article 2.
Available at:
https://roar.una.edu/jobie/vol27/iss1/2