You're right in that I could pay my EMPLOYEES what i want, give them benefets, and treat them as equals. Unfortunately, like someone else said, before long X sees this and decides you're being paid too much by X. I prefer to let market foces decide what I pay, not X. I used to be a supervisor at a company before I came to X, the company had assigned parking spots for all employees, and every once in a while I'd get a request to meet him in his office (mind you this was a small company, about 175 employees), he would say he was out in the parking lot, and so and so must be making to much money by the looks of their personal vehicle. He would turn down my requests for raises for my dept. because of this. I can just see Fred S doing the same thing, only with the contractors payments!!!