Comments on: Average CEO makes 430 times

By: Dave Smith

Dave Smith — Sat, 03 Feb 2007 15:30:10 +0000

This situation parallels the excesses and non-accountability of the late roman empire before it crumbled. American industry has run amuck with greed and lack of social accountability. This is but one statistic to site this sad fact. The late 1800’s and early 1900’s aw this same situation with robberbarrons earning $10 million/yr (tax free) and factory workers earning $500/yr. America was driven into depression and the federal government steped in to attempt a remedy. Either we will recover again in like manner or, like the romans, American industry will crumble.

By: jo blowme

jo blowme — Fri, 12 Jan 2007 23:15:27 +0000

Table I. Population Growth Rates and Corporate Pay Disparities in Selected Industrialized Countries (numbers in millions)*

CEO to Avg. Worker
Japan 16:1
Germany 21:1
U.K. 33:1
U.S. 120:1

By: kindness

kindness — Wed, 31 Aug 2005 14:51:44 +0000

Golly Dick, I guess you are right about that. Corruption sure pays (for the rich).

By: Dick Cheney

Dick Cheney — Tue, 30 Aug 2005 22:32:38 +0000

What have you got against CEO’s? Some of my best friends are CEOs. In fact I was once a CEO and, yes, I was on the “gravy train” so to speak, but I earned what I get…every million…50 of them, my accountants say.

But hey, I am just a country boy from Wyoming who made good under capitalism, proving that the trickle down theory proposed by Reagan is working even better under my, uh, I mean, the President’s leadership.

As President Bush would say, “This is America! Why don’t you go out and become a CEO, too?”

By: Jesus Christ God of WAR

Jesus Christ God of WAR — Tue, 30 Aug 2005 22:06:35 +0000

The gap between America’s rich and poor is greater than in England. Think about that one for a moment.

I. Me. Mine. Gads! America the Great?

By: Stephanie

Stephanie — Tue, 30 Aug 2005 21:12:09 +0000

These stats just show the growing inbalance between the upper class and the lower class. As the CEO makes more and more money the average production worker makes the same making the dividing line between these two very harsh. The upper class refuse to give up pay raises but the company also has the same budget so jobs are also cut due to the greed of these money hungry CEOs.

By: Fritz

Fritz — Tue, 30 Aug 2005 20:17:52 +0000

I quit working for corporate America in 2001 — I was laid off along with 3,500 other employees so the executives could obtain our shares of the company. They made millions from what was supposed to be a bonus for workers and just ended up being a dangling carrot for a greedy CEO and his cronnies.

I now work for a non-profit organization. Our CEO only makes about a third more than I do. And, I don’t have to worry about the kind of dirty boardroom deals that cost me my last job.

I’ll never work for a for-profit organization again. That’s too bad for them — but great for the community that directly benefits from what I do. More people should consider non-profits as a career choice.

By: meander

meander — Tue, 30 Aug 2005 20:10:47 +0000

There are self-feeding dynamics that lead to the continual increase in CEO pay and stagnation (or decrease) in workers’ pay. During the CEO search, the (discredited) connection between compensation and talent is paramount: high $ = high talent level. Therefore, it offers above average pay (wages, bonus, stock, etc). And the candidate gladly takes it (or negotiates for even more, thanks to a pliant search committee or board of directors). The process repeats each time a CEO is hired, thus pushing up the average.

For normal workers, though, many companies look to “control” labor costs, and therefore outsource or try to find people who will work for the same or less than the predecessor. In most cases, the idea that more pay might lead to a more skilled and dedicated worker (see Walmart vs. Costco, for example) is ignored. And so the average is held down.

By: EasyRider

EasyRider — Tue, 30 Aug 2005 19:26:58 +0000

So when do we stop the rape of the American workers by the Corporate executives?

By: Ohioan

Ohioan — Tue, 30 Aug 2005 18:06:23 +0000

I hope Labor comes back strong after the split, geared to the new century. If it does, it could act as a natural counterweight to unlimited power of corporations.

Great article:
http://www.csmonitor.com/2005/0801/p17s01-wmgn.html

By: Marie

Marie — Tue, 30 Aug 2005 18:02:12 +0000

At the beginning of the 20th century, the nation’s wealthiest were raking in their millions on the backs of the workers – unsafe conditions, long hours, low pay, and a “take it or leave it” attitude toward those who helped make the companies strong. Then came AFL-CIO, the government (OSHA) and legislation to disallow blatant exploitation of workers.
I see a shift backwards today. Corporations are reverting back to the previous century, unions are losing membership (effectiveness), jobs are disappearing, poverty is on the rise, and the gap between the have and the have-nots is growing.
Socially, I see a regression in attitudes towards the less fortunate (less compassion and charitability), I see more of “I got mine, you’re on your own,” I see women’s rights being threatened by growing conservatism, I see Republican pressure to elminate social programs designed to help the poor, sick, elderly, children, and minorities being underfunded and undermined.
The CEOs of today are the robber-barons of yesteryear. Today they have many friends in the Administration, and in Congress, and in the courts – between those three groups, the greedy will continue to make fortunes while the rest will have to settle for the falling crumbs from their banquet tables.
Nothing is wrong with capitalism basically, but something is terribly wrong with selfish, blatant greed. The religious leaders who would ordinarily have chastised the greedy, are now counted among them !

By: kindness

kindness — Tue, 30 Aug 2005 17:58:51 +0000

Back in the 60’s (I know, ancient history for many here) the ratio was 65 to 1. Not only that but back then corporations paid a SIGNIFICANTLY greater share of the total pie than they do now.

Was Aerosmith right when they said “Eat the Rich”?

By: progressive and proud

progressive and proud — Tue, 30 Aug 2005 17:36:28 +0000

These CEOs shouldn’t have to pay estate taxes, either. Right? Disgusting and greedy.

By: Andrew Felluss

Andrew Felluss — Tue, 30 Aug 2005 17:25:51 +0000

It seems that greed knows no shame. Let’s have another tax cut for the rich and vote ourselves a pay raise… and raise those middle-class’ healthcare premiums while you’re at it.

How are the conscious and the dilligent so easily enslaved?
I’m no economist, but shouldn’t inflation should be offset or slowed by ammortized production costs? Rising costs are just paying into the CEO’s wallets.

By: Concerned Conservative

Concerned Conservative — Tue, 30 Aug 2005 17:22:03 +0000

Disturbing. This trend is caused by stock compensation, which not only is too heavily skewed towards senior management but also causes too much emphasis on short term profit gains (causing companies to make unwise decisions on layoffs and outsourcing — among other things).

I’m lucky enough to be a senior exec. in a serices firm where the salary spread is only 5 or 6 to 1 (I think serivces firms probably have less spread than mfg…). The stock compensation is too concentrated at the top, but not my call unfortunately.

By: Jesus Christ God of WAR

Jesus Christ God of WAR — Tue, 30 Aug 2005 17:08:04 +0000

Any link to the fact that “official” poverty rates are on the rise?

http://news.yahoo.com/s/ap/20050830/ap_on_go_ca_st_pe/census_poverty

By: John

John — Tue, 30 Aug 2005 17:05:41 +0000

The employees work for “the Company”.
CEO’s work for stock valuations.

Two different goals and outcomes these days, unfortunately.

By: Dave

Dave — Tue, 30 Aug 2005 17:01:33 +0000

And by God that is the way it should be…. If it was up to me I would be charging those lazy worthless good for nothings for the air the breathe.

You know at this rate we are going to prove the anti capitalist right.

By: sheezus

sheezus — Tue, 30 Aug 2005 16:58:39 +0000

The CEO’s are real hard workers, don’t you know.

By: ignorance is bliss

ignorance is bliss — Tue, 30 Aug 2005 16:44:23 +0000

no administration has ever exemplified that more.