Employee to CEO pay ratio is such a meaningless and distracting measure. Imagine there is a hedge fund that has only a handful of very highly paid employees. Compare that to a very large multi-national corporation that employs hundreds of thousands of low skilled laborers (something like Walmart). Let’s also imagine the CEOs of both companies have identical pay packages. All else being equal, the hedge fund that only employs a few people is much better for society than the company employing many many more people. I don’t think anyone here would agree with that.

One thing we absolutely don’t want to do is disincentivize companies hiring people at the lowest end of the socioeconomic ladder. If employing those people lowers how much executives are allowed to get paid, what do you think is going to happen?