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Study site: CEO-worker pay imbalance grows includes the graph above.
Unfortunately this reverse robin hood (steal from the workers, stock holder, customers…) and give to the CEO tale continues. Hopefully someday soon we can at least turn the momentum in the right direction (stopping these incredibly excessive “pay” packages). Even then it will take quite a deal of reducing these ridiculous “pay” packages to reach some sense of decency. CNN article based on the report: CEO Paycheck: $42,000 a day by Jeanne Sahadi:
The CEO-to-worker pay differential in 2005 was the second highest on record. The highest was 2000, when the average CEO earned 300 times what the average worker made.
In 2002, the differential fell to 143 as the bear market took its toll on stock-related compensation. Nevertheless, between 2000 and 2005, median CEO pay rose 84 percent to $6.05 million on an inflation-adjusted basis, according to EPI.
Missing link: CEO pay and results
Home Depot CEO stifles debate about pay
Excessive Executive Pay - link to a study with even more obscene data than that in the graph above. CEO Pay: Obscene from Apr 2005
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August 21st, 2006 at 9:56 pm
[...] So funding research that hires scientists and engineers, and provides many benefits to the economy, can make a great deal of sense. The belief in this is why so many countries are focusing on improving their science and engineering capabilities. Regulating salary levels though doesn’t seem like a reasonable option to me. Hopefully companies like Google that value engineers above all else will be copied as the marketplace realizes the market has systemically been under-valuing creative knowledge workers like engineers and overpaying others. [...]
February 6th, 2007 at 2:14 pm
This is the kind of data you would expect if people are the organization’s most important resource. If instead senior management thinks the company exists to fund their lavish lifestyle and…
September 6th, 2007 at 1:36 pm
I would imagine he is getting a huge amount of money. And I would guess it will encourage those that think you have to massively overpay executives or lose them to that that will overpay them. I don’t think it is wise to pay huge sums to executives. If that means you lose some, fine, continue to manage your system well and things will still work out fine for you…
September 8th, 2007 at 12:41 pm
I think this is to be expected under the New Economy Model whereby whoever creates the massive values or perceived to be able to create massive values are given the big carrots. That is until they proved otherwise.
September 9th, 2007 at 6:23 pm
I think the evidence is very strong that executives that line their pockets (see all the links above for plenty of evidence and supporting opinions and: Tilting at Ludicrous CEO Pay - No Excessive Senior Executive Pay at Toyota - Drucker on CEOs paying themselves millions) at the expense of the other stakeholders do not create value. The situation bears most resemblance to exploitative dictators that provide massive payoffs to cronies to sustain their looting of the countries they oversee.
People are free to believe in the worth of such looters if they wish. I just hope people that believe such things don’t vote on board of directors in companies I own stock in. I don’t want my investments spoiled by massively overpaying a few people at the expense of the owners, customers, workers and other stakeholders.
January 19th, 2008 at 10:03 am
If you assume the lean company grows sales at the same rate as some poorly management company then it may well be that the lean company creates fewer jobs. However that is not a valid assumption…
June 9th, 2008 at 3:20 pm
“humans care a great deal about how they are being treated relative to others. In many ways, fairness seems to matter more than absolute measures of how well they are faring…”
October 6th, 2008 at 5:42 pm
[...] “I don’t like what is going on with executive compensation“ [...]
October 19th, 2008 at 10:47 pm
Thankfully, more of the ludicrous pay packages details are being made public and shame will force some changes (those approving these pay packages have to justify such reckless spending). Of course, some feel no shame no matter how egregious the situation…
October 22nd, 2008 at 8:33 am
[...] I stole from this hellhole.” Unfortunately we still have far too few people that see the obscene behavior of CEOs and their brooks brother bureaucrats as unacceptable. The behavior of many of them has been similar [...]
December 19th, 2008 at 12:56 pm
People, that are not honorable, and are given huge incentives to risk the future of all the other stakeholders for immense personal gain will do so…