American corporations vary in numerous and varied degrees from corporations of other countries. For example, in Japan, the government limits the highest wages a corporate officer may receive based as a multiple of what the lowest wage earner in the corporation receives. At one point, the highest paid employee of a Japanese corporation could receive only sixty (60) times the wage of the lowest paid employee of the corporation.

Is this a wise regulation, or does this somehow limit the competitiveness of Japanese corporations? Do you think that Japanese corporations in general may be less competitive in the world's marketplace than American corporations because of these renumeration (wage) restrictions? What about the common scenario in which a board of directors in a major corporation chooses to provide bonuses and/or raises to corporate executive officers despite the corporation failing to have a profitable year? What about a board providing bonuses and/or raises to top executives in years in which the corporation was forced to lay off?

The Japanese regulation that puts restrictions on wage or remuneration is indeed not a wise regulation. As said by Ashcroft, Ashcroft, & Patterson (2014), all the employees should be able to receive fair payment based upon the amount of work and effort that they put into their jobs. The pay structure should also mirror the average for other employees in a similar position and in a similar industry. Because of these wage restrictions, the Japanese firms might essentially be less competitive in the international markets. This is because they might not be in a better position to attract or tap the appropriate talent. The regulations governing the Japanese compensation structure do not provide incentives for upward mobility. They might therefore discourage qualified personnel from applying in the executive positions, which can