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US CEOs enjoy 40% pay rise

Discussion in 'Off-Topic' started by Pangur Bán, Dec 14, 2011.

  1. Pangur Bán

    Pangur Bán Deconstructed

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    LINK TO STORY

    No surprise there ... same trend in the UK. Especially like that the CEO of healthcare company McKesson earned nearly $150 million. These CEOs usually indirectly control the committees that fix their pay, but as meritocratic superhumans I'm sure they are good judges of their own worth and it is only fitting that they are rewarded further as the economy continues to tank and the average American wage falls.

    Don't however just be green with envy or jealous of your betters. If you work hard, you can get there too; it is well known that everyone who works hard is able to get rich standing between ordinary Americans and the kind of health care security available to all in many other developed and undeveloped countries.
     
  2. JollyRoger

    JollyRoger Slippin' Jimmy Supporter

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    Hopefully after two years of stagnated pay, we will wave the taxes on these victims of the economy this year.
     
  3. Quackers

    Quackers The Frog

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    good work if you can get it
     
  4. Cutlass

    Cutlass The Man Who Wasn't There.

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    It's all about what you can take. And they can take a lot.
     
  5. luiz

    luiz Trendy Revolutionary

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    A big part of a CEO's pay are stock options and bonuses related to corporate profits. So if the stocks and profits go up, so will their pay. This doesn't mean they gave themselves a pay raise. Alternatively, in years of red stock market and corporate losses their pay will take a bigger hit than that of other workers.
     
  6. Murky

    Murky Deity

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    It would be nice to see tax rates go up on the rich but it's unlikely so long as their bought/paid for Republicans have any say in congress.
     
  7. Traitorfish

    Traitorfish The Tighnahulish Kid

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    If these companies are profiting so hugely, then why are the rest of us facing wage-stagnation and even regression?

    Of course, we both know the answer to that, but it's necessary to go through the motions. ;)
     
  8. downtown

    downtown Crafternoon Delight

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    Because of gains in efficiency, and from selling to other markets. Americans don't have money (or credit) to buy crap anymore, so we sell our crap to other people.

    This stuff isn't sustainable. Wage growth has been flat for *years* now, and eventually, firms that depend on large customer bases are going to run out of customers, which will trickle and hurt everybody. My company works for huge retailers, and we're actually worried about this. Ford understood this principle. I don't think folks now care so much.
     
  9. Synsensa

    Synsensa Deity Retired Moderator

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    A wage of over 100 million dollars? I think 500k is already relatively absurd for a job wage, but over a hundred million? Dear god this economy needs fixing.

    (look at me, I'm captain obvious)
     
  10. luiz

    luiz Trendy Revolutionary

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    Yep, as downtown said I suspect the firms that are profiting the most (and thus handing out the biggest bonuses) are the ones that do a lot of business with other markets. Markets which are not facing wage-stagnation or regression.

    As you may know I work in the industrial sector, and am responsible for projects throughout South America. Our employees got an average 10% increase in their paycheck this year. I work for an American company with a very strong presence in Europe (in fact it's bigger in Europe than North America). After a very bad 2009 and 2010 profits came back in 2011, but not because of the US or Europe, the main markets, but rather because South America, Africa, the Mid East and Asia-Pacific performed really well, makiing up for mediocre results in US and Europe. So probably our CEO, who is headquartered in the US, got a substantial increase in his pay this year, despite the fact that the American and European employees did not. But employees in South America, Africa, Middle East and Asia-Pacific did get healthy pay raises. I can actually check if the CEO got a pay increase, since they're forced to publish that information, being negotiated on the NYSE.

    What I am trying to say is that if you look only at the US you see a CEO getting a pay increase (because of stock options and bonuses) while most employees face wage stagnation and some positions are cut. But in other markets workers are seeing huge increases in pay, and the firm is hiring. In a twisted way Americans should be glad that this CEO is taking home a good paycheck and spending it in the States; if things continue as they are for some more years and he relocates to some emerging market you might see less wage inequality in the US, but at the cost of less money overall...
     
  11. Cutlass

    Cutlass The Man Who Wasn't There.

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    Try decades. :p
     
  12. Crezth

    Crezth 話說天下大勢分久必合合久必分

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    In my opinion, it's because the big bosses of today aren't quite the industrialists that had the kind of insight that Ford (for example) had.
     
  13. JollyRoger

    JollyRoger Slippin' Jimmy Supporter

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    Good riddance
     
  14. Ziggy Stardust

    Ziggy Stardust New Englander

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    That's great, that means the Job Creators can create 40% more jobs.

    Trickle that bonus down baby yeah!
     
  15. Hygro

    Hygro soundcloud.com/hygro/

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    profitability in business is in decline, and with it comes strange side effects, like an increased demand for top talent to make firms more profitable. This means that you can have recession correlating, or even causing increased top executive salaries.
     
  16. downtown

    downtown Crafternoon Delight

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    I don't think we're getting a lot of job growth from typical consumer level spending from the top 300 or ceo corporate executives, outside of the specific luxury-good industry. The volume isn't deep enough.
     
  17. warpus

    warpus In pork I trust

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    That is one of the main problems right there.

    People in the U.S. keep talking about "job creation", but the best way to create jobs is to give the middle class more disposable income. That will lead to more demand for products and services, an increase in the potential to make a profit, and so a need to hire more employees to make that happen.

    How do you make that happen though? If you have one company stepping up to the plate and increasing wages for its employees, they will initially see a fall in profits, as opposed to the opposite. So it seems like you need for a bunch of companies to start doing that at once, but is that even possible?
     
  18. Murky

    Murky Deity

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    Most Americans are buying things on credit these days. You could probably guess that most transactions are made by the use of credit-cards. Almost nobody pays cash for anything that cost more than a few hundred dollars.
     
  19. downtown

    downtown Crafternoon Delight

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    This needs to be shouted from every mountaintop, posted on every facebook wall, and sent to every congressman. Consumer demand is what drives expansion...not taxation (when tax rates are already low). If there is a demand, a smart business will grow to meet it, even if that margin is a little lower than it was 20 years ago.

    When I worked for Careerbuilder, I prob called hundreds of business owners and hiring managers (and my company called thousands), asking why they weren't hiring. The VAST majority said what you did...we can't hire because nobody is buying our stuff...not because the state is in the way (the ones who complained about regulations were typically talking about city laws, not federal).
     
  20. luiz

    luiz Trendy Revolutionary

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    I'm not saying you're getting a lot of spending, I am saying that if the CEOs of firms doing a lot of business overseas relocate to emerging markets it will result in less inequality in the US, but it won't be any good for you guys. The fact that so many high-level and high-pay executive positions of multi-national corporations are located in the US is a good thing for your country.
     

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