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Saturday, December 20, 2014

Many corporations will self-destruct from misregulation

Editor,

Cancerous regulation is required to maintain the pay of the overpaid. It’s funny to think that a hyper-efficient organization could value an entity over 100 times another, when the most complex system we know of — the human body — only allows about a times 10 multiplier for our brain.

What a high-level executive or system’s owner really is is a protected person. By owning a company or having a certain level of ‘executive’ authority, one can bypass being fired from certain roles or forced to evolve.

They can’t do this alone, though. A regulatory process that prevents ejection of non-performing units must exist. That regulatory system must fight the pressure of the company to evolve.

The pressure builds from ever bigger, self-sustaining foundation nodes to eject owner influence. As the company gets better at running itself, the ability to replicate hyperefficient nodes (small departments, for example) must compete with owner resource control.

In order for protected persons or owners to take on more money, the regulatory processes, often cheaply-outsourced to make them a more productive element, must fight back.

It’s not that these processes are evil. Instead, it’s allowing for any protected persons in an evolving system that causes cancerous resource allocation.

Greater resources are required to grow the regulatory processes to shield protected elements from ejection. This is executive pay.

This is why high-level employees often have large, diverse staffs.

By paying the staff disproportionately, protected persons can fight detection of overpay by taking on more and more responsibility without actually doing the work.

I propose that growth in executive pay is actually a signal of cancerous regulatory elements shielding ever less economic-protected persons.

Think about that.

Vincent Brandon
UNM student