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Sunday reading for April 20, 2014:

1. Zachary Karabell, Head of Global Strategy at Envestnet has a great post up on Linkedin illustrating the futility of fixating on out-sized executive compensation packages as a potential means to improve the economic conditions of the middle class. He points out that many of the largest companies are now multinational ones that answer to no single government. As such, implementing broad policies that impact the size of their pay packages would be difficult. Perhaps more importantly, however, he also points out that re-distributing, say, two-thirds of the highest compensated CEO’s pay to the 100 million lowest earning individuals would have a negligible to incremental impact on the day-to-day lives of the people the re-distribution is intended to help. He closes by postulating that attempting to eliminate the disparity between the highest and lowest paid people around the globe by capping the compensation of those at the top misses the point – that being that the best way to raise the remuneration of those most in need of the extra cash is to do the hard work of changing the way they’re educated and the skills they develop before they enter the workforce. This is a really good, highly recommended read. Check it out here.

2. One of my big professional goals is to one day build (or re-design from the ground up) a compensation structure for a large cap company. As such, I was excited to read this piece from Ann Bares, Founder and Editor of the Compensation Café, Author of Compensation Force and Managing Partner of Altura Consulting Group LLC. Among other things, in the piece Bares talks about a principle challenge that many a structure architect may encounter during the ideation and design process – namely that senior management is likely to push for a swift end to it. She then counsels on walking the delicate line between capitulating to pressure to move the process along too early versus allowing it to continue on for too long. Again, I recommend that you check this one out here.

As always, please share your thoughts in the comments below.