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: [1]
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.
If a stockholder does not like the pay, then dump the stock. We do have options in life. Vote with your wallet – there are no guarantees in life.
CEOs are over paid, so are athletes, movie stars and musicians. So what? It is not like the money would go to the little guy, rather spread amongst other rich folk. When the Home Depot guy got his big pay day, the media failed to report that he grew the company by 10 fold, something like 60 Billion Dollars. Now, don’t quote me on that, I don’t have time to look it up this very second, but the point is he made a shit pile of cash for everyone, and then he received a WAY TOO big pay day, but hell, he grew the company. At the very least the CEOs have worked their way up, believe it or not, and they have paid their dues – unlike a 20 year old junior getting 40 Million for an unproven rubber arm or a 19 year old sophomore with a suspect jump shot. Such is life.
But Gene for every 19 year old with a suspect jump shot getting paid 40 million there are thousands who do not make even close to that. On the other hand a white blue blood with no experience can walk into any company and within a few years he has a CEO job or some form of upper management position in which he will get vastly overpaid for doing vague “work”.
There is a system that perpetuates itself within upper crest of white collar America that cannot be compared to the life of an artist or athlete. Per hour of work I guarantee the later has worked his way up just as much.
Short term growth isn’t progress. Viva La Revolution….or can it change without a depression and rioting?
Ahhhhhh……..WHAT? 50 year old men who become CEOs have put in much more time than 22 YO athletes or 24 YO actors. Time is a consideration, and your view on “vague work” proves that you are an idiot. Ask any CEO and they will confirm that they have put in many hours – sorry if you can’t accept that. They are not just handed jobs, YOU KNOW NONE OF THESE PEOPLE, I , on the other hand, do know these people and future CEOs and they put in a lot of hours, from school to work to charity. Most are very hard working, and have put in many hours.
Who the hell do you think you are to question someones success that involves business and employment of thousands but brush off kid athletes and actors who are NON productive millionaires? They contribute very little compared to CEOs who employee people. I know many have shipped jobs off, but it is called BUSINESS, something your little handout life can’t comprehend. This is the Varsity Level of Life, so stick to your JV crying about someone else’s success. Apply for the job if you are so qualified.
you lose the argument gene. Had to call names like a child. Nothing new here though.
Nooooooo…….. I’m right on the argument, we are talking about OTHER PEOPLE’S MONEY. As for name calling, yes, I admit it is childish, but on occasion the Super Libs need to understand it is not their cash, so stop trying to distribute it as you see fit. And CEO’s have generally worked MUCH MUCH MUCH harder and longer, with more time spent in school and the real world than athletes and actors, but we rarely bitch and moan about their salaries. IE A-Rod – $252 Million for playing a game, and he does not even employee that many people. Again, not your money, and it is not going to you or anyone else who wants a hand out. Learn to play THEIR GAME, and maybe you will see some cash.
Gene did resort to name calling. However, his frustration is shared by many. In my eyes his point is extremely valid.
J.r. Locke’s post efficiently illustrates his dislike of Capitalism and self-sufficiency. He comes off as being envious of the successes of others. He left me with the impression that he’s a true devote of wealth re-distribution, also known as Socialism.
I feel sorry for people like Mr. Locke. He lives one of the greatest, richest nations of the world and cannot compel himself to enjoy it.
The best cure for poverty and misery is CAPITALISM.
would you like to provide any kind of statistical data and/or analysis on your theory? I would say that the best way to look at it by asking this simple question: What is the best, for the most?
After all, we are but by the mere protoplasmic chance of the universe, who we are. You could just have easily have been born into a grotto of misery in Calcultta. Who and what we are is mere chance in the DNA lottery.
Be VERY VERY careful with the “what is best, for the most…” idea. What is BEST for THE MOST would be putting people in jail, for life, if you drink and drive, do drugs and drive, etc…… If you have an assault record, just once, you are gone, b/c the would be the BEST, for the most.
Simply put, the money we are talking about is not yours – and if a stockholder does not like it, SELL. Somehow, someway Jerry Seinfeld can make $100 million with a funny show, but a CEO growing Home Depot can’t? If you are outraged, then be OUTRAGED by it all……… John Edwards, Al Gore, Hillary Clinton, all freakn’ rich….. and you would vote for one of them. Double standards. Some of you favorite bands have made it big, but others have not, soooooo with equal talent, who should get paid?
And if your faith lends you to believe that you situation is merely by chance, great. Then by pure chance you could win the lottery or get some horrible disease, so why bother then? Why work? Why not mooch off the government and the back of your neighbor? Why try? ………….. It is not about money, that happens kinda by chance as well. Just like life. We should not chose who should live and die, and we should not chose to spend someone else’s money.