: Roland Berger, David Grusky, Tobias Raffel, Geoffrey Samuels, Chris Wimer
: The Inequality Puzzle European and US Leaders Discuss Rising Income Inequality
: Springer-Verlag
: 9783642158049
: 1
: CHF 47.50
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: Sozialwissenschaften allgemein
: English
: 227
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Is there too much inequality? We are witnessing for the first time in many decades a vigorous public debate in the United States and many European countries as to whether income inequality is approaching unjustifiable levels. The financial crisis has drawn special attention to remuneration at financial firms, as well as other more broadly based increases in inequality, and the pendulum may well have swung back toward attitudes favoring strengthened regulations. It is against this background of shifting public and political views about income inequality that the Roland Berger Foundation decided to solicit the opinions of U. S. and European political, business, and labor leaders by partnering with the Stanford Center for the Study of Poverty and Inequality. This initiative, led by a diverse team of five authors, sought to cast light on how prominent European and U. S. leaders are making sense of rising inequality. The objective was not to provide yet another scholarly tome on inequality, or another analysis of how the general public views inequality. We are already awash in such analyses. What we don't know, and what we have sought to offer, is a window into how senior leaders view this historic moment. In the summer of 2009, we interviewed thirteen political, business, and labor leaders and presented these interviews in their original form.
The Inequality Puzzle3
Preface5
Contents7
Part 1: Introduction9
Is There Too Much Inequality?10
Part 2: Interviews18
Josef Ackermann CEO and Chairman, Deutsche Bank19
Bertrand Collomb Honorary Chairman, Lafarge27
Gabriele Galateri di Genola Chairman, Telecom Italia44
Jürgen Hambrecht Chairman, BASF53
Maurice Lévy Chairman and CEO, Publicis62
John Monks General Secretary, European Trade Union Confederation72
Sir Mark Moody-Stuart Former Chairman, Anglo American Former Chairman, Shell
Poul Nyrup Rasmussen President, Party of European Socialists Former Prime Minister, Denmark
Fred Smith Chairman, President and CEO, FedEx106
John Sweeney President Emeritus, AFL-CIO119
William Weld Partner, McDermott Will119
Former Governor, Massachusetts126
James Wolfensohn Chairman and CEO, Wolfensohn126
Former President, The World Bank133
Jerry Yang Co-Founder and Chief Yahoo, Yahoo!145
Part 3: Summary153
Trends and Topics from the Interviews154
Observations154
Financial Crisis Draws Attention to Inequality154
Excess, Not Inequality, Is the Concern156
The Public, Perception, and the Media158
Categories of Wealth (Not All Money Is Equal)159
Causes160
Ethics160
Psychology, Peer Groups, and Pay162
Pay Transparency162
Mobility and Reduced Loyalty162
Limitations of Financial Incentives163
Pay Conflated with Status163
Equal Opportunity Failings164
Remedies166
Ethical Reform166
Improve Equal Opportunity167
Mentoring169
Corporate Equal Opportunity169
Targeted Investment169
Compensation Reform and Corporate Governance170
Transparency170
Limits on Pay Not Recommended171
Taxation to Control Excess Compensation172
Variable Long-Term Pay Based on Real Results172
Shareholder Participation173
Level Playing Field174
Government Policy, Tax, and Regulatory Reform174
Other Suggestions to Strengthen the Disadvantaged175
A View from the Top176
Is Rising Inequality a Problem?176
What Caused the Rise in Inequality?180
How Might Inequality Be Remedied?184
Conclusions187
Part 4: Commentary189
Five Principles for Moving Forward190
1. Inequality: General Observations190
Statistics190
Culture191
Globalization and Economic Growth192
Democracy and Fairness194
2. What to Do: Recommendations196
Ensure Equality of Opportunity (Equal Opportunities, Not Equality of Outcome)196
Early Childhood Education198
Vocational Education and Training198
Diversity200
Improve Social Mobility200
Advocate Ethical Behavior202
Rethink Compensation in Terms of Corporate Governance203
Balance Taxation Intelligently205
Can Inequality Be Reduced by Building Better Markets?207
Education and Market Failure211
Executive Pay and Market Failure215
Conclusion218
About the Authors220
Partnering Institutions221
Roland Berger Foundation221
Stanford Center for the Study of Poverty and Inequality221