I meant some claim CEO pay tied to worker might encourage layoffs.
If you have 10 workers average pay 100k and you last off your lowest paid worker the average goes up, and you're paying less out of pocket.
By having bonuses showing that you're not trying to game the system by laying people off it encourages job growth.
That and the idea of pay cap is to ensure business growth over CEO enrichment. How does it hurt the companies bottom line if the CEO can only earn 10 Mill not 50m? When it gives 40 surplus for new devs or r and d people to grow new products and income opportunities.
yeah, it would actually decrease the number of employees if employee cost is significant enough to not be absorbed by raising the price. It might also decrease it by forcing a robustness check on existing businesses. A lot of them manage but couldn't absorb a financial hit; this would be a minor crisis but one that could just push marginal businesses over the edge.
