Study site: CEO-worker pay imbalance grows [the broken link has been removed] 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:
Put another way, the average worker — who earned $41,861 in 2005 — made about $400 less last year than what the average large-company CEO made in one day. That assumes 260 days of pay (52 weeks x 5 days a week).
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 [the broken link has been removed]
Home Depot CEO stifles debate about pay [the broken link has been removed]
Excessive Executive Pay – link to a study with even more obscene data than that in the graph above. CEO Pay: Obscene from Apr 2005
Pingback: Curious Cat Science and Engineering Blog » Engineers in the Workplace
Pingback: Compensation at Whole Foods
Pingback: Curious Cat Management Improvement Blog » Jim Press, Toyota N. American President, Moves to Chrysler
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. 😛
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.
Pingback: CuriousCat: Creating Jobs
Pingback: CuriousCat: Fairness Matters
Pingback: Warren Buffett Webcast on the Credit Crisis at Curious Cat Investing and Economics Blog
Pingback: Curious Cat Management Improvement Blog » Exposing CEO Pay Excesses
Pingback: Curious Cat Management Improvement Blog » CEOs Plundering Corporate Coffers
Pingback: Curious Cat Management » Looting: Bankruptcy for Profit
Pingback: Curious Cat Management Improvement Blog » Tilting at Ludicrous CEO Pay