In 2010, CEO Pay Went Up 27% While Worker Pay Went Up 2%

  • Posted by a hidden member.
    Log in to view his profile

    Apr 02, 2011 4:32 PM GMT
    More evidence of how inherently rigged the US economy is toward the wealthy.

    USA TodayAt a time most employees can barely remember their last substantial raise, median CEO pay jumped 27% in 2010 as the executives’ compensation started working its way back to prerecession levels, a USA TODAY analysis of data from GovernanceMetrics International found. Workers in private industry, meanwhile, saw their compensation grow just 2.1% in the 12 months ended December 2010, says the Bureau of Labor Statistics.


    Full article here:

    http://www.usatoday.com/money/companies/management/2011-03-04-1Adirectorpay04_ST_N.htm
  • rnch

    Posts: 11524

    Apr 02, 2011 4:35 PM GMT
    the rich get richer and the poor man goes to work.



  • Posted by a hidden member.
    Log in to view his profile

    Apr 02, 2011 4:51 PM GMT
    This is the result of what started back during Reagans war on the middle class, policies have steadily and stealthfully been enacted that direct wealth to the few, bringing about the true redistribution of wealth. Republicans sing the mantra of socialist Dems trying to redistribute wealth while they are actually the group who have been doing it successfully only upwards. It doesn't work, every time in our history that we've had a period of such high percentages of the nations wealth in the smallest percentage of hands, there has been deep recessions or the great depression. Money must circulate to have a vibrant economy and when only a few have the money, very little of it circulates as compared to when the masses have it to spend. Wealth hoarded up does no good, wealth spread out and used is self propagating, producing far more wealth.

    Sometimes I sit and wonder what the hell will it take for the general public to see reality and stop backing issues against their own interests. These CEO's are making many times what the workers make, yet those very poor jokers will vote to cut their own throats. look at what Walker is trying to do in Wisconsin and many other Governors who rode in on the wave to vote against Dem "socialists", now some are waking up to what they've brought on themselves, but not nearly enough.
  • Posted by a hidden member.
    Log in to view his profile

    Apr 02, 2011 5:16 PM GMT
    southbeach1500 saidYep, the government needs to regulate all wages, including those of CEO's.


    Ah... the typical strawman argument from SouthBeach. How tiresome.
  • Posted by a hidden member.
    Log in to view his profile

    Apr 02, 2011 5:23 PM GMT
    southbeach1500 said
    Christian73 said
    southbeach1500 saidYep, the government needs to regulate all wages, including those of CEO's.


    Ah... the typical strawman argument from SouthBeach. How tiresome.


    Um... so what do YOU propose?

    Or would you rather just whine about it?


    I propose shareholder and consumer activism. You know, market-based solutions to this egregious self-pay scheme where CEOs plunder companies and lay off workers to enrich themselves.
  • Posted by a hidden member.
    Log in to view his profile

    Apr 02, 2011 5:23 PM GMT
    Christian73 saidMore evidence of how inherently rigged the US economy is toward the wealthy.

    USA TodayAt a time most employees can barely remember their last substantial raise, median CEO pay jumped 27% in 2010 as the executives’ compensation started working its way back to prerecession levels, a USA TODAY analysis of data from GovernanceMetrics International found. Workers in private industry, meanwhile, saw their compensation grow just 2.1% in the 12 months ended December 2010, says the Bureau of Labor Statistics.


    Full article here:

    http://www.usatoday.com/money/companies/management/2011-03-04-1Adirectorpay04_ST_N.htm


    I'm curious - do you also accept that pay of CEOs and senior management is far more volatile than median incomes? Which is to say that they fall rather dramatically in bad years but they also rise dramatically when their companies begin to rebound?

    Not quite clear how this is evidence of "rigging". If anything based on the narrative of risk - ie that they have far more risk and volatility in income, it shows the greater the risk, the greater the reward (especially since CEO tenures consistently fall as they get fired a lot faster now than in the past).
  • Posted by a hidden member.
    Log in to view his profile

    Apr 02, 2011 6:10 PM GMT
    Christian73 said... I propose shareholder and consumer activism. You know, market-based solutions to this egregious self-pay scheme where CEOs plunder companies and lay off workers to enrich themselves.

    No problem with shareholder activism. The thing is the shareholders have a vested interested in CEO performance. One of the biggest indicators is maintaining or increasing shareholder value. Such activism could work to their detriment by either having less incentive for the CEO to perform or losing a good CEO to another company. As far as consumer activism, that would be relevant mainly to companies that sell end products to consumers. Many others in the supply chain would not be affected. Among companies that do sell end products to consumers, would only have any impact if there were a significant differential in CEO compensation among companies selling the same product. Can't see it having any impact to speak of, but you can give it a shot.
  • TrentGrad

    Posts: 1541

    Apr 02, 2011 6:27 PM GMT
    Christian73 said
    southbeach1500 said
    Christian73 said
    southbeach1500 saidYep, the government needs to regulate all wages, including those of CEO's.


    Ah... the typical strawman argument from SouthBeach. How tiresome.


    Um... so what do YOU propose?

    Or would you rather just whine about it?


    I propose shareholder and consumer activism. You know, market-based solutions to this egregious self-pay scheme where CEOs plunder companies and lay off workers to enrich themselves.


    The only problem with this is those CEO's have become very adept at shifting market views in their favour by appealing to individual greed.

    The middle class works against itself because they don't see the end result of the "great deal" they get for random crap that used to be produced locally, contributing to a healthy domestic economy.

    How about proportional tax hikes for people earning more than $500,000 a year?

    Your pay jumped 27% Mr. CEO? Congrats! BTW, your taxes are also increasing by 27% this year.

    Have a nice day! LOL
  • Posted by a hidden member.
    Log in to view his profile

    Apr 02, 2011 6:32 PM GMT
    Mandating shareholder voting on officer salary for companies > a certain level of capitalization would be a good start.
  • rnch

    Posts: 11524

    Apr 02, 2011 6:35 PM GMT
    looks like it's high time to raises the taxes on corporations and the wealthiest Americans.


    icon_idea.gif
  • GQjock

    Posts: 11649

    Apr 02, 2011 6:52 PM GMT
    but $174 k. Is the new baseline for the lower middleclass

    Right rep Duffyicon_rolleyes.gif
  • Posted by a hidden member.
    Log in to view his profile

    Apr 03, 2011 1:34 AM GMT
    riddler78 said
    Christian73 saidMore evidence of how inherently rigged the US economy is toward the wealthy.

    USA TodayAt a time most employees can barely remember their last substantial raise, median CEO pay jumped 27% in 2010 as the executives’ compensation started working its way back to prerecession levels, a USA TODAY analysis of data from GovernanceMetrics International found. Workers in private industry, meanwhile, saw their compensation grow just 2.1% in the 12 months ended December 2010, says the Bureau of Labor Statistics.


    Full article here:

    http://www.usatoday.com/money/companies/management/2011-03-04-1Adirectorpay04_ST_N.htm


    I'm curious - do you also accept that pay of CEOs and senior management is far more volatile than median incomes? Which is to say that they fall rather dramatically in bad years but they also rise dramatically when their companies begin to rebound?

    Not quite clear how this is evidence of "rigging". If anything based on the narrative of risk - ie that they have far more risk and volatility in income, it shows the greater the risk, the greater the reward (especially since CEO tenures consistently fall as they get fired a lot faster now than in the past).


    Do you read the Wall Street Journal? Please tell us how many CEOs who were not actively engaged in criminal activity saw their pay or bonuses tied to their performance? Even if you could demonstrate that, which barring a few outliers, I'm betting you can't, if the company is doing so well? Where are the raises for all the workers?

    The system is rigged in that is rewards solely short-term "success" as determined by share price increases. So, no matter how detrimental to the company, employees, industry, environment, etc, that is what senior management pursues, and - even when they fall flat - they've already negotiated a golden parachute. Whereas hardworking middle class people and even professionals are lucky to get a couple weeks severance when their job is "off-shored" to increase the share price.
  • Posted by a hidden member.
    Log in to view his profile

    Apr 03, 2011 1:36 AM GMT
    socalfitness said
    Christian73 said... I propose shareholder and consumer activism. You know, market-based solutions to this egregious self-pay scheme where CEOs plunder companies and lay off workers to enrich themselves.

    No problem with shareholder activism. The thing is the shareholders have a vested interested in CEO performance. One of the biggest indicators is maintaining or increasing shareholder value. Such activism could work to their detriment by either having less incentive for the CEO to perform or losing a good CEO to another company. As far as consumer activism, that would be relevant mainly to companies that sell end products to consumers. Many others in the supply chain would not be affected. Among companies that do sell end products to consumers, would only have any impact if there were a significant differential in CEO compensation among companies selling the same product. Can't see it having any impact to speak of, but you can give it a shot.


    Shareholder activism has to start before the CEOs compensation package is established to ensure that it is linked to long-term positive outcomes for the company, its employees, and the communities it operates in, not just manipulating the share price for a couple of fiscal quarters.
  • Posted by a hidden member.
    Log in to view his profile

    Apr 03, 2011 3:23 AM GMT
    rnch saidlooks like it's high time to raises the taxes on corporations and the wealthiest Americans.


    icon_idea.gif


    Tax them and then there will be more cuts to workers benefits. What will a corporation do who is being faced with higher taxes? Cut some more benefits from the workers so they can pay the taxes. icon_cry.gif .