Compensation Quote by Barney Frank
“Increasing inequality in income distribution in this country has broader policy implications, and there is also the growing problem of perverse incentives that result from executives receiving grossly disproportionate compensation based on decisions they themselves take.”
About This Quote
Source Speech: Congressional Hearing on Income Inequality, 2009
Excessive pay gaps create policy challenges and perverse incentives for executives.
In simple terms: Huge pay gaps cause policy problems.
Key Takeaway
Address compensation fairness.
Themes
economics
policy
ethics
Mood
analytical
critical
Type
policy analysis
economic commentary
When to use this quote
- legislative reform
- corporate governance
- public budgeting
- tax policy
Key Concepts
income distribution
executive compensation
incentive design
Questions to Reflect On
- How can incentives be aligned with public good?
- What reforms reduce executive excess?
A Different Perspective
Complex political interests may resist change.
![“I think that if you have a single payer system and an opt-out for people who want to pay more [for better service, etc.], I think it would be better - and I think we'll eventually get there. It wouldn't be better at the top - [our current system] is the best in the world at the top. But the waste…” quote by Charlie Munger](https://sms4smile.com/quotes/img-quotes/333/charlie-munger-458_currents_i-think-that-if-you-have-a-single-payer_3236714.jpg)
