Dear Wall Street Journal: CEO Pay Caps are Micromanagement
Editor, The Wall Street Journal
To the Editor:
Editor, The Wall Street Journal
To the Editor:
You report that "New York State Attorney General Andrew Cuomo is in discussions with Rep. Barney Frank and other lawmakers on a plan to tie Wall Street pay to the long-term performance of the firms" ("Cuomo, Frank Seek to Link Executive Pay, Performance," March 13). But lest anyone conclude that Messrs. Cuomo and Frank propose giving government excessive power, we're assured that "A person close to Mr. Cuomo said change is needed but the intent isn't to micromanage or interfere with the private sector."
Reality is not changed by dishonest disclaimers. Suppose that I threaten to break my neighbor's knee-caps if I determine that the weekly allowance he gives to his children is too high. Should he be reassured if my threat is accompanied by an announcement that my intent isn't to interfere in his private life?
Sincerely,
Donald J. Boudreaux
Don Boudreaux is the Chairman of the Department of Economics at George Mason University and a Business & Media Institute adviser.
