Pay Should Reflect Productivity

Top CEOs earned $8 million on average last year, up sixfold from the early 1980s. The market capitalization of major U.S. corporations during the same time also grew sixfold. So, broadly speaking, CEOs are getting paid what they're worth.

CEO pay controls, a minimum wage hike — we're going down a slippery slope. If we're not careful, someday we'll end up with an official incomes policy. Just like the old Soviet Union.

As economists will tell you, pay in a market economy should follow productivity — not the dictates of politicians. The most productive among us will earn the most. Step in the way of that, and you strangle the very engine of our prosperity.

From today's Investor's Business Daily.