Fortune 500 CEOs relative to the average wage in the United States
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- CarolynGillis
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more from Green:
http://current.com/items/88960701_high_ceo_pay
n recent years, there has been a lot of criticism concerning the salaries of Fortune 500 CEOs. The graph below from The Economist shows how much CEO compensation has grown relative to the average wage in the United States.As you can see, the compensation for executives in major US corporations was around 30-40 times the wages of the average worker up until the late 1980s. Now, executives make over 100 times the average wage. You could also look at the largest compensation packages for US CEOs on this Forbes site, noting that the highest paid CEOs make a couple hundred million dollars for the year (this of course includes bonuses and stock compensation).
Some are particularly aghast at what CEOs make when their performance is poor. For example -
The Corporate Library, an American corporate-governance consultancy, last year identified 11 large and well known but poorly governed companies, including AT&T, Merck and Time Warner, where the chief executive had been paid at least $15m a year for two successive years even as the company's shares had underperformed. Robert Nardelli received a $210m pay-off when he lost his job earlier this month even though the shares of his company, Home Depot, fell slightly during his six years in charge. Carly Fiorina, ejected from Hewlett-Packard almost $180m better off—including a severance payment of $21.6m—after a lacklustre tenure as chief executive.
What do you think about the increase in executive pay? Is it an outrage or is it fair? Should there be restrictions on how much a CEO can be paid? You may want to remember our discussion of labor markets and how marginal revenue product was the basis for how much someone should be paid.
Posted by Michael Arjona
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- News and Politics, Green, Earth and Science, Health, 5 more
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Owlman1953
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I work at a Steel Mill that just got sold it hasn't showed a profit for years and was not able to pay the workers that were breaking records in making steel production.It sold for a litte over a billion and some odd cents.It is the goose that laid the golden-egg.Two brothers just made a couple million in the year and a half that they were in charge.Others in the past have Golden Parachutes woth millions! The average worker is lucky to get a little over$1200-$1500 a month and thats the newest retires,Guys like my dad that spent 40yrs get around $500-$550 and then SS.
- 1 year ago
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Owlman1953
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TexasPatriot67
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Something needs to be done all that money and they are not improving their community or helping their fellow man SHAME on them
- 1 year ago
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TexasPatriot67
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twodee
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my day to post music as response to things.
"six billionaires.....crawling on a plate.....none of them give back.....as much as they take......."
- 1 year ago
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twodee
