Les Leopold has written a piece on The Huffington post, Tie Wall Street Profits and Bonuses to the Unemployment Rate. This is similar to what the Horizon Project has alluded to, in addition to policy ideas Ralph Gomory and Margaret Blair have presented to Congress on the problems with executive pay and corporate governance.
Leopold proposes a steep windfall tax on executive pay and bonuses, tied directly to the U.S. unemployment rate:
Now is the time for a policy that directly connects the well-being of Wall Street to Main Street. Congress and the Administration should call for a steep windfall tax on all Wall Street profits and bonuses, directly tying the tax to the unemployment rate. The justification is simple: When the economy crashed, we put the entire financial sector on welfare with bailouts valued somewhere between one and thirteen trillion dollars (depending how you count the various liquidity programs and asset guarantees.) Welfare recipients are not entitled to windfall profits.
We should start with a windfall profits/bonus tax of 90 percent as long as the yearly average unemployment rate is higher than 10 percent. Then it could drop as follows:
75 percent until the yearly unemployment rate drops below 9 percent;
60 percent until it drops to 8 percent;
45 percent until it drops below 7 percent;
30 percent until it clears 6 percent and;
15 percent until it crosses 5 percent.
Full-employment (below 5 percent) would automatically end the windfall tax.
This is the issue. Corporations are completely divorced with the U.S. national economic interest and look at workers as some sort of commodities to be discarded instead of having any sense of responsibility to the U.S. labor force.
This is why we get CEOs offshore outsourcing jobs at the drop of a hat. Being fired these days is so common, it has no correlation to meritocracy or job performance. There is a Schindler's list mentality towards employees.
We need to get all businesses, operating in the United States, to have responsibility to the U.S. workforce and to the national economy as part of their charter.
Hitting them in the pocket book might be a way to do it.