Free Market and Corporate Regulation

Hypothesis

I got a contract to clean a football stadium. I estimated it will take 15 people to clean it in 4 hours. So I hired a few and took some of my friends all together 15 people, did the job in 4 hours and paid each one of them at the rate of $10/hour (much higher than the minimum wage of $6.75). So I paid $10 X 4hours = $40 per person. So for 15 people I paid overall $40 X 15people = $600.00. Is it fair? Yes because I paid $3.25 more than the minimum wage!

Now if you know I got $7000.00 for the contract to clean the stadium and I made $6400 in the same 4 hours do you think I was fair to the 15 workers I took to get the job done?

I make sure my workers do not know how much I got for the contract. So they think I am fair (as I paid more than the minimum wage) and keep working for me when I call for similar work.
So within a few years I get many contracts and make lot of money and get some robos and cleaning machines to make the job easier but as I can get away with my workers I reduced the number of workers to clean the stadium from 15 to 10 and started paying $9/hour. With the equipments I have the job is 'effeciently' done at a shorter period with less workers so my profits go high. I get $9000 (inflation) for cleaning the stadium but I pay only $9/hour (still fair as the minimum wage has gone down to $6.50) my profit has gone up ($9000 - ($9 X 3hours)X10workers) = $9000 - $270 = $8730!

I do not tell my workers how much is my profit in the name of confidentiallity!
Some of the workers whom I laid-off as I do not need them (as the machines have made the jobs 'efficient' and easier) tried to get similar contracts in town BUT FAILED because they could not COMPETE with me as I have advantage over them through my modern machines and money that I already have!

THIS IS CAPITALISM AND FREE MARKET IN OPERATION NOW!

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If we want real free market and fair play we need real good regulations!
This are my ideas for a better Free Market!

1. The CEO of a Publically owned Corporation should not be the CEO for more than 12 years (Maximum term limit).

2. The Board of Directors should have term limits upto 12 years maximum and no one should be in the Board for more than one Public company at a time.

3. All salary and compensation for any given post/position (like CEO, Board od Directors, Senior Engineer, Manager Level 1, Worker Level 1 etc ) should be readily available and accessibile to the employees and to Public.
E.g. Company X
For 2009
CEO - Range $1,500,000 to $7,500,000 per year
Director - Range $400,000 to $600,000 per year
Manager Level 1 - Range $70,000 to $75,000 per year
Worker Level 1 - Range $18,000 to $23,000 per year

4. A company that is classified as Medium and above should have a safety fund (alloted from its profit) to pay all its employees salary for the next 2 years.

5. All company that is classified as Medium and above should guarantee salary for all its employees (This is purpose of the safety fund given in item 4 above) for the next 2 years.

Note: A Medium company can be classified as having more than 15 workers or that earns more than $5,000,000 in revenue a year.

6. All company that is classified as Medium and above should have Union for all its employees (White and Blue Color). Election for the Union should be held anywhere between every 3 or 4 years(one term) and no one should be in the Union board of executives (President, Vice-President, Secretary etc for more than 12 years - Term limit). Union should not have the power or say on whom to hire and lay-off but should be involved only in the welfare / benefit and salary range negotiations for various job categories.

7. All employees in a Public Company should be elegible for the same amount of Stock Option. (Say upto $10,000 a year as decided by the Board of Directors, Mangement and Union. The CEO and Board of Directors or no one should have extra stock options!)

8. Trading of Stocks in Stock Market

Every companys' stock value should be evaluated on a quartely basis and this should be the face value of the stock for that quarter.
No day trading - Day trading as well as frequent trading of a stock by the same person leads to gambling of stocks and artificially change the worth and non-worthiness of a stock.
So no one should be allowed to buy and sell the same stock within a period of 3 months.
If a person wants to sell a stock within less than 3 months then one other period to sell should be one week prior and one week after the official quarterly evaluation and public announcement (release) of every company's stock value.

For e.g.

Every Public Company's worth should be evaluated an released on say
Jan 31 of a year, then
April 30 of the year, then
July 31 of the year, then
Oct 30 of the year.

Case 1. If I buy 15 shares of a Company's stock on Feb 15 of the year then I should be able to sell
either 3 months from the date of purchase (May 15 of that year) and any time after that
or
Case 2. one week prior the next evaluation date (April 23 to 29 of the year ) and one week after the evaluation date (May 1 to May 7 of the year). If I miss this period then the only possibility should be after the 3 months of purchase period as given in case 1 above.
This will prevent gambling and artificial worthiness/non-worthiness of stocks and prevent companies from collapse due to speculation/gambling.

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-Suresh