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Publicly open Company's Fairness Rating could show, how fair are owners, executives and top managers in sharing financial success of the company with common workers and employees. This idea can be pushed worldwide by trade unions, organisations and politicians.
Absolute equality, when people get the same reward (e.g salary), no matter, how big their personal contribution is, reduces motivation to contribute.
Extreme inequality, when people are not paid enough for their personal contribution, also reduces motivation to contribute. Extreme inequality harms society and economy, because poor majority don't have enough money to buy products and services, except those, which can fulfil basic needs, in order to survive. You can't sell much to poor people and small rich minority don't need large amount of products and services. If people are poor and have no money to buy services and goods - economy stagnates. Owners, executives and managers, who are in power of determining salaries for themselves and common employees... often abuse that power and can't control their own greed. This must be solved.
Local Revenue and Tax agencies must know three basic things, to make calculations:
1. How many workers company has in the country.
2. Average % of owners, directors and top managers in companies with 1000 employers. Lets say, it is 10%.
3. How much company paid to each company worker per year.
Calculations (usually, Revenue and Tax agencies already have necessary data):
1. Get that data from every company in their country with (for example) more than 1000 employees.
2. Calculate average monthly income (after taxes) per person for top 10% and for bottom 90%.
3. Turn these two averages into % and publish this data in table with ability to search for company and sort data by managers and employees. Example:
| Incomes of Employees (90%) -- Year Averages |
|
21.4%
|
22.7%
|
24.1%
|
25.8%
|
27.6%
|
| 2018 |
2019 |
2020 |
2021 |
2021 |
| No. |
Company Name |
Average Income of Managers (10%) |
Average Income of Employees (90%)▲ |
| 1 |
Company “A” |
99.7% |
0.3% |
| 2 |
Company “B” |
99.1% |
0.9% |
| 3 |
Company “C” |
98.4% |
1.6% |
| ... |
... |
... |
... |
| 410 |
Company “U” |
59.5% |
40.5% |
| 411 |
Company “V” |
58.8% |
41.2% |
| 412 |
Company “Z” |
57.2% |
42.8% |
Average income of common employees, could be called “Company's Fairness Rating”. In this example:
Company's “A” fairness rating would be only 0.3%
Company's “Z” rating would be 42.8%.
Percentages (instead of actual currency) would be easier to understand and to compare, how behave different or the same companies in different countries.
On top of the list there could be year averages, to monitor overall progress.
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