I don’t have a problem with excessive CEO pay- as long as it’s their money, and they can loose it all. Unfortunately, most of the time- it’s the stockholders’ money, and they aren’t reaping the real rewards. Push past the crazy pay, and the focus on short term/quarterly performance is driving many businesses to offshore, downsize and make decisions that impact the overall economy in a huge way- all while the CEO’s just dance off into the sunset with their scads of cash.
Study: CEOs earn 364 times as much as their subordinates – Dayton Business Journal:
A new study says large U.S. company chief executives made as much money in one day last year as average workers were paid over the entire year.
The report, “Executive Excess — The Staggering Social Cost of U.S. Business Leadership,” compiled by the Institute for Policy Studies and United for a Fair Economy, said the private equity boom “has pushed the pay ceiling for American business leaders further into the economic stratosphere.”
The same top executives averaged $10.8 million in total compensation, or more than 364 times the pay of the average American worker, based on data from a survey of 386 Fortune 500 companies.
While workers making minimum wage are beginning to receive the first federal minimum wage increase in a decade, the survey said the new minimum wage of $5.85 is still 7 percent below what it was a decade ago in real terms.
Meanwhile, CEO pay — over that same decade — has increased by about 45 percent.
While changes in the capital gains tax are one way government can reel in some of this misbehavior- the other is to make companies with grossly unbalanced pay structure be responsible for all their unemployment insurance directly out of the company till. No more falling back on Uncle Sam. That should bring some sanity back to the corner office.