Employees Information Commission (EIC)
An independent agency responsible for setting thorough and effective
reporting requirements for corporations for their employees and consumers
Equal access to information is essential for efficient economic markets. Businesses need
to be transparent about information, including goals, actions to implement those goals and
compensation structures in support of those goals. The Employees Commission would
be essential in making that happen.
The Employees Information Commission would be an independent, SEC-type entity. The SEC ensures shareholders have accurate and adequate information from businesses for free and fair capital markets. The EIC would ensure employees have accurate and
adequate information from businesses for free and fair economic markets.
Ensure that businesses report adequate and accurate information to their employees and consumers, including:
~ Corporate goals for balancing the interests of employees, consumers and shareholders, with comparison against the economic and social goals and guidelines recommended by the Issues & Guidelines Commission
~ Management compensation plans and how they are structured to accomplish corporate goals
~ Measurement of accomplishments of corporate goals
Excessive Income Inequality.
Over the past forty years the percent of US income received by
90% of the people has declined from 65% to 50%
. That 15% shift represents approximately
$2.5 trillion per year. The income received by the top 10% of the people increased from 35%
to 50%, approximately $2.5 trillion per year, with the top 1% of the people increasing from
10% to 20%, $1.7 trillion per year.
Unfair Impact on the Income of the Non-wealthy.
On average, the 90% of the public had no increase in income
during that time. White males in that group saw a decline in both income
and status. If this shift in income hadn't happened, 90% of the people in the US would have
30% higher incomes today.
Reduced Economic Growth and Wealth Asset Inflation. Because 90% of the people drive consumer demand and consumer demand drives economic activity, this shift in income has limited demand for products and therefore the economic growth of the country. Excess income to the top 10% has resulted in significant, and not economically supported, stock market and other high end asset price inflation.
During the past forty years the purpose of a corporation has been defined as being to maximize shareholder value. Shareholders are business owners and are primarily the
top 10% of the people in our country. There is currently an effort to redefine the purpose of a corporation to be for the benefit of all stakeholders
, not just shareholders.