Business Law Discussion

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American corporations vary in numerous and varied degrees from corporations of other countries. For example, in Japan, the government limits the highest wages a corporate officer may receive based as a multiple of what the lowest wage earner in the corporation receives. At one point, the highest paid employee of a Japanese corporation could receive only sixty (60) times the wage of the lowest paid employee of the corporation.

Is this a wise regulation, or does this somehow limit the competitiveness of Japanese corporations? Do you think that Japanese corporations in general may be less competitive in the world’s marketplace than American corporations because of these renumeration (wage) restrictions? What about the common scenario in which a board of directors in a major corporation chooses to provide bonuses and/or raises to corporate executive officers despite the corporation failing to have a profitable year? What about a board providing bonuses and/or raises to top executives in years in which the corporation was forced to lay off?

 

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