The CEO of Netflix wrote an opinion editorial in the New York Times. It was an open letter to the president asking that he and fellow CEOs be taxed even more (from 30% up to 50%).
The difference between you and your CEO may be the amount of experience, skill level, industry knowledge and, perhaps, market dynamics. These factors come into play when negotiating your compensation whether it is your role or that of a senior executive. If your CEO feels guilty about their success, should you? Or is it the order of magnitude giving you safe haven?
CEO’s already “limit” their compensation. After so many wins, money ceases to be a meaningful measurement for executives. Once you can afford the college-days Top Ramen budget a thousand times over, significance starts to play a bigger role. By “significance”, I mean starting to solve other, perhaps even bigger, issues than running a company or a major part of one. Key examples include the Bill and Melinda Gates Foundation, Larry Page and Sergiy Brin’s One Laptop Per Child, U2’s One Campaign and George Soros’ Millineum Project. True, you don’t have to be a millionaire to give, but large scale giving leads to enormous impact. Successful business people give freely.
If our executives are taxed more or don’t spend their earnings, how does society benefit? Perhaps the rest of us should limit our compensation too and do our part. Here’s a short list of how executives or you and I can mitigate any guilt of being over paid:
- Hold a bake sale and raise money to off set your earnings, giving it all to charity.
- Say “no” to any monetary offer from your employer, be it a raise or a new job. Just tell them, “I just want to work here.”
- Offer to “cap” your work hours. Someone also wrote a witty letter to President Obama. This request was to put a cap on workweek hours. Work less, earn less.
Airing your compensation guilt publicly isn’t virtuous. It’s narcissism. Don’t talk about, but rather do some good.
THe Netflix CEO should shut up or put his money where his mouth is. He can pay more in taxes. There’s no law that says you have to claim deductions. And you can write a check to the IRS in excess of what you owe. The government will gladly take more of your money. They certainly aren’t going to investigate you for over-paying.
I really don’t know if this piece was satire or serious. If one wants to read Ayn Rand to better cope with the current economic weather patterns, I recommend Atlas Shrugged.
And if you really-really want to feel better about yourself, your neighbor, your community, then consider the following formula: 1) Work your ass off, 2) try to negotiate the highest possible dollar for your time, 3) spend and invest your money wisely, 4) teach your kids the values of self-reliance and team work, and 5) pay as little in taxes as you are legally required.
Now, if it will make you feel better to donate, then why would you donate to elected politicians who will allocate the money to things which THEY decide are best (taxes)? Perhaps a better way is for each one of us to pick the recipient of our donations and donate in private.
Todd Rogers said it better than I can, so…ditto.
Thanks for your take on things, Todd. I happen to agree it. What got me going was the pontification by the CEO. It doesn’t encourage anyone else to take risks, be more self-reliant etc. Pop-culture has folks lined up to get their “allowance” from the federal government. Keep giving them hell, Todd.
BRAVO Todd,
I think we need to have the CEO’s grow a pair, male or female and sit up there in front of Congress and TELL THEM WE ARE CAPITALISTS! Stop feeling sorry for making money and try to influence others to make more.
Look at the reports out recently In 2002 the latest year of available data, the top 20 percent of taxpayers paid more than 60 percent of all individual income taxes, but reported roughly one-third (30.6 percent) of income.
This is the first time in my life that over 50% of the people in the US say it is ok to “tax the rich more” the Government, needing a boogie man (or woman) are all about the propaganda.
The CEO’s get up in front of the Congress and get excoriated for owning Jets and getting the office remodeled.
Then Nancy Pelosi has the “nuts” to say, “uh, sorry, I have to go, have to get to the airport and take my PRIVATE PLANE over to Italy!!
The Congress is so out of touch, they do not get it, or they DO GET IT and they are playing us like a Stradivarius.
They have the ear of people who need to blame someone. The Congress wants to diffuse the wrath of the public away from themselves so they pick the easiest fruit.
No one is talking about the thousands of small businesses that file taxes as individuals and make over $250,000. They are “rich” even though the 250 is gross, not net.
Thanks for your thoughts, David. I could have sworn I saw Kris Dunn shed a tear…