There’s long been the Peter Principle. Now there’s the Drucker Principle.
The Telegraph (U.K.) reported on a major labor union’s demand that the “Drucker principle”—limiting top executive compensation to no more than 20 times that of the lowest-paid employee—be adopted as part of the G20 agenda.
Speaking at the annual World Economic Forum in Davos, the general secretary of the 20-million-member UNI Global Union called present levels of executive pay “obscene” and insisted there needed to be major adjustments.
To learn more about the “Drucker principle,” read this 2008 BusinessWeek online column by Drucker Institute Executive Director Rick Wartzman.