Daily CEO pay now exceeds average worker's annual salary

Padawanbater2

Padawanbater2

Well-Known Member



In 1965, the average CEO made 20 times the average worker. Now the ratio is 273 to 1, meaning the average CEO makes in a day what their workers make in a year.


U.S. corporate CEO salaries rose 16 percent in 2012 according to a new report from research firm Equilar. Top salary: Larry Ellison of Oracle - over $96 million. Top exit bonus: James Mulva of ConocoPhillips - $156 million.

Average salary for the CEOs of the top 200 U.S. companies with revenue of over $1 billion was $5.3 million. The big money, however, is paid out in stock and options which added another $9 million to the median compensation package for the CEOs.

Worst off were the workers at these companies whose median pay is now at a historic low compared to the CEOs. In 1965, according to a new report from the Economic Policy Institute, the average CEO made 20 times the average worker. Now the ratio is 273 to 1 ie the average CEO's daily salary is now greater than the annual salary of their workers.

Ellison did even better - he was paid the equivalent of the average U.S. salary of $45,790 every single hour last year.

“So much for the idea that shareholders were finally getting through to corporate boards on the topic of reining in pay,” writes Gretchen Morgenson at the New York Times. The salary survey was commissioned by her newspaper.

And CEO’s sometimes do even better when they quit.

Take for example, James Mulva of ConocoPhillips. He was paid $140.8 million in 2011 but topped that in 2012 when he left the company after 10 years as CEO. Once he cashed out his stock options, took his retirement bonus and got his final paycheck, he collected a whopping $260 million in 2012.

The New York Times has a list of the rest of the top ten in departure bonanzas: Edward Breen was paid $46.2 million after leaving Tyco International, George Lindemann of Southern Union got $44.1 million, Kevin Sharer of Amgen was paid $40.4 million, Douglas Foshee of El Paso Corporation got $37.4 million, James Skinner of McDonald’s and Brian Duperreault of Marsh & McLennan were each paid $33 million, Michael Szymanczyk of Altria got $27.9 million, while John Chapman of Axis Capital Holdings made $26.5 million. Lynn Elsenhans of Sunoco was the only woman in the group with $23.6 million.

Mulva may have made the most in 2012 but three CEOs would have received even more under their current contracts had they been let go, according to Bloomberg News. David Zaslav of Discovery Communications will get $224.7 million if he’s fired, Les Moonves of CBS will get $251.4 million and John Hammergren of McKesson Corporation tops the charts with a potential $303.4 million.

These “golden parachute” arrangements have had a negative impact on corporate performance, say experts. “If you have a safety net of this type of gargantuan size, it starts to undermine the CEO’s desire to build long-term value for shareholders,” Paul Hodgson, a director at corporate governance researcher at BHJ Partners, told Bloomberg. “You don’t really care if you’re fired or not.”

Not all corporate titans did quite as well in 2012. Another Equilar survey conducted for the Financial Times shows that the top 15 bankers made an average of just $11.5 million down 10 percent on the previous year. Highest paid was John Stumpf of Wells Fargo who got $19.3 million followed by Jamie Dimon of JP Morgan who was paid $18.7 million.


http://thecontributor.com/daily-ceo-pay-now-exceeds-us-workers-annual-salary
 
Padawanbater2

Padawanbater2

Well-Known Member
Harrekin said:
Jealous much?
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I could post an immature reply to this, like you have, but what would that do?


Jealous? No, I'm not jealous of a person making $40K+/hour, I know if I were making that much, it would undoubtedly be at the detriment of some other (likely many) people. 273 times more than the average worker of your company, that's fair? "Fair, fuck fair, who says the CEO of the company has to be fair?"... you're right, nobody says that (a problem in itself in America..), but something you don't seem to understand is that I don't need to be told what fair is to understand it, I don't need to be shown how many people might agree with my idea of what fair is to see the absurd economic inequality that's being perpetrated against the American working class by the corporate class.

So while people like you will defend this bullshit till the final breath, there's nothing you can say when it comes to the damage its demonstrably done to the country. That much is obvious, a shrinking middle class and expanding government power under the false guise of security. Soak it up, they're counting on you!
 
Harrekin

Harrekin

Well-Known Member
Padawanbater2 said:
I could post an immature reply to this, like you have, but what would that do?


Jealous? No, I'm not jealous of a person making $40K+/hour, I know if I were making that much, it would undoubtedly be at the detriment of some other (likely many) people. 273 times more than the average worker of your company, that's fair? "Fair, fuck fair, who says the CEO of the company has to be fair?"... you're right, nobody says that (a problem in itself in America..), but something you don't seem to understand is that I don't need to be told what fair is to understand it, I don't need to be shown how many people might agree with my idea of what fair is to see the absurd economic inequality that's being perpetrated against the American working class by the corporate class.

So while people like you will defend this bullshit till the final breath, there's nothing you can say when it comes to the damage its demonstrably done to the country. That much is obvious, a shrinking middle class and expanding government power under the false guise of security. Soak it up, they're counting on you!
Click to expand...
So short answer, you are jealous.

CEOs can only be paid what the market will handle and if companies choose to pay people millions of dollars to work for them, then who cares?

Try not to spew your Green Eyed Monster all over the interwebz again, I feel embarrassed for you.
 
abandonconflict

abandonconflict

Well-Known Member
[video=youtube;_Go8tnl21MU]http://www.youtube.com/watch?feature=player_embedded&v=_Go8tnl21MU[/video]
I posted this in a dead end thread you probably won't look at so I am posting again here, not trying to spam by posting the same thing in different places.
 
Padawanbater2

Padawanbater2

Well-Known Member
Harrekin said:
So short answer, you are jealous.

CEOs can only be paid what the market will handle and if companies choose to pay people millions of dollars to work for them, then who cares?

Try not to spew your Green Eyed Monster all over the interwebz again, I feel embarrassed for you.
Click to expand...
If I were making $40K+/hour legitimately, ie. not at the expense of other people, I would feel completely justified in it

It isn't about the money, it's about the exploitation, in the exact same way grandma's all across America get exploited into handing over their savings to con artists with false promises..

People like you think these people have earned it by the sweat of their brow when that claim is proven false with each biography, all it takes is a Google search to see how wrong you are about this..
 
kpmarine

kpmarine

Well-Known Member
Harrekin said:
CEOs can only be paid what the market will handle...
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I think all of those recently bailed out businesses are a pretty sound counterpoint to that. CEO pay has spiraled, and it is honestly concerning. It's showing a further shift away from stockholder concerns, and a greater emphasis on milking a company for your own ends. When you make more by getting fired; what's the incentive?
 
Rob Roy

Rob Roy

Well-Known Member
brotherjericho said:
So OP...what's the solution?
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End subsidies / cronyism. (corporate welfare) Deregulate. (remove barriers to competition) Free market. (a real free market....not the bogus one that exists)

Government intervention in the market is usually at the core of all economic problems.
 
brotherjericho

brotherjericho

Well-Known Member
Rob Roy said:
End subsidies / cronyism. (corporate welfare) Deregulate. (remove barriers to competition) Free market. (a real free market....not the bogus one that exists)

Government intervention in the market is usually at the core of all economic problems.
Click to expand...
QFT...problem is, some people want the government to fix problems that they were the cause of. Good luck!
 
Rob Roy

Rob Roy

Well-Known Member
brotherjericho said:
QFT...problem is, some people want the government to fix problems that they were the cause of. Good luck!
Click to expand...
First they break your legs. Then they steal some money and get some crutches. Then, they hand you the crutches and pat themselves on the back.
 
UncleBuck

UncleBuck

Well-Known Member
Rob Roy said:
First they break your legs. Then they steal some money and get some crutches. Then, they hand you the crutches and pat themselves on the back.
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so, did the big bad gubbmint man break your legs?

only you can put you on the couch for 8 weeks. quit insisting that the government draft a new constitution for every angst ridden, coming of age teen like yourself.
 
T

tokeprep

Well-Known Member
Padawanbater2 said:
If I were making $40K+/hour legitimately, ie. not at the expense of other people, I would feel completely justified in it

It isn't about the money, it's about the exploitation, in the exact same way grandma's all across America get exploited into handing over their savings to con artists with false promises..

People like you think these people have earned it by the sweat of their brow when that claim is proven false with each biography, all it takes is a Google search to see how wrong you are about this..
Click to expand...
How are you measuring "at the expense of other people"? The companies that spend $40 billion a year at Oracle seem to find their products useful. That $40 billion in sales supports 120,000 jobs. So Larry Ellison makes $100 million, is it really at the expense of anyone? He founded the company and owns around $40 billion in stock. $100 million isn't much of a dividend to pay the man who built the $140 billion enterprise.

You don't think software is actually useful? It's all a scam?
 
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