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Pay survey: CEO/minimum pay gap becomes chasm

by Dave Konkel [Moderator] / June 28, 2006 12:56 AM PDT
Pay gap between CEOs, workers becomes chasm.

>> The average American CEO earns more in a half day of work than a minimum wage worker takes home all year, according to a study published on Tuesday.

The Economic Policy Institute said earnings data shows the average chief executive earned 821 times as much as a minimum wage worker, the highest gap ever.

"This extreme compensation ratio reflects both the extraordinary growth of CEO pay and also the diminishing value of the federal minimum wage that has not been raised since 1997," said Lawrence Mishel, president of the research group. <<

-- Dave K, Speakeasy Moderator
click here to email semods4@yahoo.com

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Another non-issue.
by EdH / June 28, 2006 1:02 AM PDT

None of your business what CEOs OR minimum wage earners or ANYONE makes.

The amount that a CEO makes is irrelevant to what someone else makes. It is a useless comparison.

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BIG NEWS FLASH
by duckman / June 28, 2006 1:07 AM PDT
In reply to: Another non-issue.

Tenured college teachers make boatloads more that their teaching assistants doing the class work while the professors do research or grant writing!!!!!!!!!!!!

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(NT) (NT) Often below minimum wage!
by Evie / June 28, 2006 8:32 AM PDT
In reply to: BIG NEWS FLASH
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In yesterday's local newspaper...
by Angeline Booher / June 28, 2006 5:53 AM PDT

... was a piece about a CEO of a hospital group that "retired" at the age of 55. He was given a 3.5 million dollar package.

This man had been with the group for 5 years, during which the profits fell. He started some mergers with which the stockholders were very unhappy, as well.

Wonder what his package would have been had he pleased the stockholders? Happy

Angeline
Speakeasy Moderator
click here to email
semods4@yahoo.com

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(NT) (NT) wow I can mismanage it for half of 3.5
by kmarchal / June 28, 2006 7:28 AM PDT
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Sounds like ...
by EdH / June 28, 2006 7:46 AM PDT

3.5 Mil small price to get rid of him, which is probaboly ewxactly what happened

Not uncommon.

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Yeah but should it?
by Roger NC / June 28, 2006 3:56 PM PDT
In reply to: Sounds like ...
...3.5 Mil small price to get rid of him...

Hey they get rid of the rest of us for at best a weeks pay per year of service, and even 20 years wouldn't be close to that. And that's for market cutbacks. For unsatisfactory performance, it can be as simple as get your *** of the property and don't come back.

This is one of the things I know already we disagree on. Your position is 'all the traffic will bear' and no one's business how much.

Mine is just it's foolishness. Maybe I can't blame them for taking it, I might be that selfish too if someone offered me that much. But companies that loose then pay a bonus to get rid of the leader?

DaveK and I disagree most of the time, but a lot of these cases of CEO extortion....

IMNSHO,,,,, ********.
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Woulda, shoulda....
by EdH / June 28, 2006 8:59 PM PDT
In reply to: Yeah but should it?

The board's decision, not mine.

I was part of a 20% "reduction in force" year ago, and it cost them a more than a week's pay per year to get rid of me and the other employees that were cut, so it depends on where you work and what you do.

But how is that relevant to the CEO being paid off to leave? It doesn't matter what the other fellow is getting. Not your business. Someone is always getting a better deal than you, and someone is always getting a worse deal than you. If you screw up the other guy's deal, it ain't gonna make yours better.

I don't know where you see "CEO extortion". Seems like no such thing as far as I can see. Companies pay to get rid of a CEO all the time, for various reasons. You are only seeing one side of the story. Maybe he was thwarted by company politics. Who knows? It only makes good sense to have a severance package negotiated before taking a job.

Simple envy, thinks I.

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(NT) (NT) Corporate pre-nup
by Diana Forum moderator / June 28, 2006 9:09 PM PDT
In reply to: Woulda, shoulda....
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Envy? hmm, maybe some, don't think so much, but
by Roger NC / June 29, 2006 1:33 AM PDT
In reply to: Woulda, shoulda....

hey, I know I'm not perfect.

I was part of a 20% ''reduction in force'' year ago, and it cost them a more than a week's pay per year to get rid of me and the other employees that were cut, so it depends on where you work and what you do.

True enough. But what I see wrong with CEO and board salaries lately is a bit like Congress, they get to set their own by ''scratching each other's back''. And it seems out of line often enough. Could I be wrong? sure. And to me, it seems they're often out of line.

If you screw up the other guy's deal, it ain't gonna make yours better.


But from outside at least, it often looks like that is what they are doing. Do I expect to make what a CEO makes? hell no. But it rankles when CEO's and board of directors keep raising their salaries while cutting back on number of workers and benefits in their companies. So they're making their deal better while screwing up the companies workers deal.

Ask an American Airlines worker how they felt a few years ago when they were agreeing to cutbacks to help ''save the company'' and found out just after they agreed that the CEO and Board of Directors had quietly moved assets outside the 'restructuring'' to protect untouched their golden parachutes. (And no, I don't work for them and never have.)

Can I do anything about it other than grouse? Only the bit you suggest about not owning stock in the company. And I'll confess, what stock market investment I have are in indexing funds, and I don't know exactly who and what they own from month to month.

It doesn't matter what the other fellow is getting. Not your business.

I already noted that you have made that opinion clear in the past and the right amount is ''all the traffic will bear''.

Hell, where I work now pays me lots more than I could make doing similar work in 90% of the places around here. So maybe I am as greedy as anyone in taking the job here.

But oh well, what do I know? I'm just a blue collar factory worker, just an interchangeable part in business. I'm not to be compared with the intellectuals and artistic types am I?

Shrug, have a good weekend, I knew we disagreed totally on this, and don't see it changing.


Roger

click here to email semods4@yahoo.com

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Wasn't thinking of you specifically..
by EdH / June 29, 2006 2:53 AM PDT

when I said "envy". More the original poster and teh general culture which seems ot encourage looking over at the other persomn's plate to see how theirs stacks up to it.

People should mind their own business more and poke their noses in other people's less IMHO.

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Let's face it ...
by Evie / June 28, 2006 11:01 PM PDT
In reply to: Yeah but should it?

... CEO's are like the "stars" of the business world, like big name athletes, actors and musicians are in their respective realms. There really aren't a lot of them around, and when a company is looking for good leadership, it's almost like trading players in a sports league.

But just like sports or the movies, recruiting a star and paying them big bucks is no guarantee of success. But they've negotiated contracts with a certain amount of guaranteed compensation and bonuses. So too, the CEO.

Evie Happy

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Also ...
by Evie / June 28, 2006 11:06 PM PDT
In reply to: Let's face it ...

... going back to the statement in DK's article

The average American CEO earns more in a half day of work than a minimum wage worker takes home all year, according to a study published on Tuesday.

This could be applied to these other professions as well. ARod makes more in one at bat than a minor league rookie makes in a year. Tom Cruise made more filming one minute of MI3 than most bit actors make in a year (including their other jobs ;)).

It's a meaningless comparison.

Evie Happy

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(NT) (NT) Probably the same
by Diana Forum moderator / June 28, 2006 9:10 PM PDT
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