Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

xchrom

(108,903 posts)
Fri Jun 13, 2014, 04:59 AM Jun 2014

8 Reasons Some CEOs Make 331 Times As Much As Their Employees

http://www.alternet.org/economy/8-reasons-some-ceos-make-331-times-much-their-employees



***SNIP

1. Trade deals that work against us.

Put simply, we got tricked into approving “free trade” deals that rigged the rules to allow companies to escape the borders of our democracy, with its good wages and worker safety and environmental protections. We let companies move production to places where people don’t have rights and the environment is even less protected, and then let them bring the same product or service back here to sell for the same price!

***SNIP

2. Stock ownership.

As trade deals enabled companies to drive down wages their stock went up. In April, Josh Boak wrote in the AP that one reason is that CEOs are paid heavily in stock. “The average value of stock awarded to CEOs surged 17 percent last year to $4.5 million, the largest increase ever recorded by the AP.” And stocks are way up, “The S&P 500 jumped 30 percent last year, compounding the size of the CEOs' paydays.”

***SNIP

3. “Friendly” boards of directors give big raises to CEOs and pay cuts to others.

Boak also wrote that CEO pay is soaring because CEOs have friendly boards of directors. “Many boards are composed of current and former CEOs at other companies. And in some cases, board members are essentially hand-picked or at least vetted by the CEO.”

***SNIP

4. Privatization of public services has forced millions into poverty.

The AlterNet story, The Privatization Scam: 5 Horror Stories of Gov't Outsourcing to Greedy Private Companies, outlines how decades of “privatization” and outsourcing have forced millions into poverty, with big profits going to a few CEO types.
11 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
8 Reasons Some CEOs Make 331 Times As Much As Their Employees (Original Post) xchrom Jun 2014 OP
These are the reasons we cannot ignore a Enthusiast Jun 2014 #1
+1 xchrom Jun 2014 #2
+ 2 swilton Jun 2014 #3
+3. I had to keep it going, besides, this deserves it! Dustlawyer Jun 2014 #4
You mean it's not because they are ... LisaLynne Jun 2014 #5
You deserve a plus one. Enthusiast Jun 2014 #7
And a plus two. nt laundry_queen Jun 2014 #8
Kick, nt. Lunacee_2013 Jun 2014 #6
Countries with the most equal income distributions all do it with the same policies. pampango Jun 2014 #9
People forget the income/expenditure data from more than 2 years ago dickthegrouch Jun 2014 #10
K&R.... daleanime Jun 2014 #11

Enthusiast

(50,983 posts)
1. These are the reasons we cannot ignore a
Fri Jun 13, 2014, 06:25 AM
Jun 2014
Right trending Third Way dominated Democratic Party. If we think all is well because the party supports popular social issues we are going to find ourselves very disappointed in the near future.

Dustlawyer

(10,495 posts)
4. +3. I had to keep it going, besides, this deserves it!
Fri Jun 13, 2014, 07:52 AM
Jun 2014

If there is any proof that our government is bought off the trade deals would be it. Those Representatives knew jobs would be leaving in droves, but their campaign contributions and private industry jobs for obscene amounts of money were too much to resist for ambitious individuals who love money and power over everything else! This applied to Democrats and Repugs alike, including the Big Dog, Bill Clinton with NAFTA.

LisaLynne

(14,554 posts)
5. You mean it's not because they are ...
Fri Jun 13, 2014, 07:55 AM
Jun 2014

captains of industry who are creating jobs and leading us poor masses to a glorious life of productivity while being paragons of virtue and by the virtue and creativity and intelligence and because of that deserve to be showered with riches?

Oh and I forgot to add that they just WORK SO MUCH HARDER than the rest of us. Such burdens are put upon them.

pampango

(24,692 posts)
9. Countries with the most equal income distributions all do it with the same policies.
Fri Jun 13, 2014, 09:51 AM
Jun 2014

High/progressive taxes;
Strong safety net and national health care;
Legal support for strong unions.

The US has none of those. Our taxes are low and regressive; our safety net is weak; our health care system may be improving but it way below the standard of progressive countries; with the enactment of Taft-Hartley we not only do not legally support strong unions we actively undercut them with "right-to-work" states.

The list of those with the most equitable income distributions includes no countries with low/regressive taxes, a porous safety net and weak unions that is on If we are going to deal with our inequality we have to deal with these issues. We don't need to reinvent the "income equality" 'wheel' that has already been proven to work in many progressive countries.

OTOH, the countries on that list that have the best distributions of income in the world, all recognize the value of international trade. Such trade is a much, much larger part of their economies than it is in the US.

74% in Germany
62% in Sweden
51% in Canada
47% in France
37% in the UK
22% in the US

The US cannot effectively deal with inequality by restricting international trade. None of the progressive countries in the world do this.

And the US actually tried this in the 1920's when republicans repeatedly raised tariffs and reduced trade substantially. The result: by the end of the 1920's we had a record level of income inequality. FDR dealt with this by enacting higher/progressive taxes, improving the safety net and creating legal support for unions - just what progressive countries do today. And FDR took steps to increase international trade - just what progressive countries do today.

dickthegrouch

(3,173 posts)
10. People forget the income/expenditure data from more than 2 years ago
Fri Jun 13, 2014, 02:28 PM
Jun 2014

It's never made sense to me that we can only this year's and last year's financial data. I want to see yearly comparisons of income vs expenditures going back 10 years, preferably categorized into things like salaries, bonuses, taxes, research, write-offs, etc. I want to see on a stacked bar graph how the income and expenditures relate to each other over the long term.
A company that loses 600,000,000 in a year doesn't easily recover, but we can't see the effect of that loss more than 2 years from its announcement.

There are all sorts of ways other complex financial data is hidden from the investor's view.

I also want to see the effect of mergers and acquisitions on the overall profitability (and share price) many years later. How many have actually been beneficial to all concerned (I suspect the real answer is NONE!). Even if the share price goes up, does the value of the company stay the same, or is it asset-stripped until it's worthless and then the "goodwill" gets quietly written-off?

Those CEOs are NOT earning their fabulous salaries. I think far more of their compensation should be locked in for 5 or more years to ensure that the supposed benefits last long-term.


Latest Discussions»General Discussion»8 Reasons Some CEOs Make ...