Limit CEO Earnings, NDP's Turmel Suggests

First Posted: 10/17/11 08:42 PM ET Updated: 12/17/11 05:12 AM ET

Nycole Turmel
The federal government should look at ways to limit CEO salaries, NDP Interim Leader Nycole Turmel said Monday.

The federal government should look at ways to limit CEO salaries, NDP Interim Leader Nycole Turmel said Monday.


Turmel says employee salaries are low and benefit plans limited, making her question how CEOs can make so much.


"They should say, 'Okay there's a maximum that you can give an increase to the CEO and reinvest it in the company to create more jobs,'" she told Evan Solomon, host of CBC's Power & Politics, on Monday.


Asked if she meant there should be salary ceilings for private sector CEOs, Turmel said there should be a limit to bonuses and wage increases.


"There should be a ceiling, I would say, in the wage increase, there should be ceiling," Turmel said.


"There should be consultation with the private sector. Could we bring in legislation? We have to look at it. But there should be some discussion done with the private sector," she said.


Turmel also said there should be strings attached to subsidies given to companies.


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The federal government should look at ways to limit CEO salaries, NDP Interim Leader Nycole Turmel said Monday. Turmel says employee salaries are low and benefit plans limited...
The federal government should look at ways to limit CEO salaries, NDP Interim Leader Nycole Turmel said Monday. Turmel says employee salaries are low and benefit plans limited...
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HUFFPOST SUPER USER
Kritikos
Intelligence is not a science
05:51 PM on 10/20/2011
CEO Salaries = OBSCENE.
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CanadaStan
Cogito ergo spud, I think, therefore I yam
07:53 PM on 10/18/2011
Let's legislate a limit on union wages as well.
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Jeffery Cuneo
09:23 AM on 10/19/2011
The government just did legislate union raises with Canada Post no?

I think it's silly to cap salaries, wages, or bonuses. If someone is doing a good job let them have it. However, I think she does have a GREAT point when it comes to attaching strings to subsidies that businesses receive. We shouldn't simply be giving money to corporations while expecting nothing in return except for them to grace us with jobs...
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CanadaStan
Cogito ergo spud, I think, therefore I yam
12:25 AM on 10/24/2011
We shouldn't be subsidizing corporations in the first place.
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tnanimation
11:12 AM on 10/19/2011
Yeah, why would we want anyone to make a living wage? Let's kill ALL the manufacturing jobs left here. That will surely be good for the economy.
12:26 PM on 10/18/2011
Lee Iacoca, in his book "Where Have All the Leaders Gone" wrote something to the effect that "although it is not supposed to be so, corporations are now run for the benefit of their CEOs, not their shareholders." That has to be changed!

For starters, executive compensation should be subject to approval of the shareholders. Presently we have a cozy 'you scratch my back and I'll scratch yours' relationship between CEO and their Boards of Directors that has seen CEO salaries grow from 20x average salary to as high as 300x.

I agree, there should be a limit on the ratio of executive compensation to average employee compensation, but unless and until we get the influence of corporations out of government, that would be a very difficult idea to sell.
11:31 AM on 10/18/2011
While I am disgusted by the income gap and some of the CEO salaries being published, it is not the job of government to cap private business salaries and she is doing the NDP harm by saying so.

There are other ways to skin the cat that would bet more traction with the voters. Your company can afford a multi million dollar payout to the CEO, or if your CEO makes 50x more than the avg salary for your company you don't need subsidies. Or set the highest individual tax brackets to penalize such obscene payouts. 80% on income over 5mil sounds good. Make it so they actually take home more money at a lower salary.
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Jeffery Cuneo
09:24 AM on 10/19/2011
All great ideas. Awesome post.
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Kristopher Leang
training to take down the elite
11:15 AM on 10/18/2011
she is right we have to think of these companies alsot like as employees who are kids with management who ae adults. how is it just to let the children starve while the parents drive porches and spend more and more, record amounts in bonuses each year.. its just inhuman. but then again these corporations policy works like a pyschopath
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spinnerator
10:12 AM on 10/18/2011
Ah, the ghost of Rae Days politics reveal. This is why the NDP will never succeed. First it's the Rich kids next it's the middle class. Oh wait last time they talked about the rich kids but went straight to shafting the middle class because they were the only ones they could touch.
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WorkInCanada
Life is hard; it's harder if you're stupid. John W
01:42 PM on 10/18/2011
There's a heck of a lot more "poor kids" working for one or a few "rich kids" and if all of those poor kids vote in a government that has the kahunas to tax obscene salaries and bonuses with obscene taxes then all will be well in my world. If I was a "rich kid" I might be busy hiding my money right now because the cash bonanza might be coming to and end in the not-so-distant future. I would totally vote for her as long as the tax was obscene - don't care about a salary cap as the tax would do effectively the same thing. If crazy corporations can't stop the lottery winning CEO salaries, I think the government will do better at creating jobs with a crazy tax.
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CanadaStan
Cogito ergo spud, I think, therefore I yam
07:54 PM on 10/18/2011
You aren't hiding your money already?
You poor fool...