"The Rabid".
A characterization that was leveled at Corporate Executive Compensation during a morning drive time news cast. The title was dead-on in its illustration of the issue.
I sometimes foray into the unbalanced manner in which America's elite literally manage those who are less fortunate. The topic is so much a frustration to me as a progressive that I feel the need to delve a little deeper.
The following set on information exemplifies the seriousness of the executive compensation (EC) issue and how well paid executives may have metrics (or expectations) that lay-offs increases their potential for remuneration. Actually reducing the workforce (via layoff and possibly even shipping jobs overseas) and hording capital can lead to the (hypothetical CEO's) potential earnings as much as three to four million more per year!
The Institute for Policy Studies (IPS) has released its 17th survey related to the Executive Pay issue. This report relates to CEO Compensation and its potential impact on the Great Recession. It also includes information that is most disheartening to me as a "true American".
Institute for Policy Studies
Executive Excess 2010: CEO Pay and the Great Recession
Disclaimer and admission: Institute for Policy Studies (IPS) is a politically progressive think tank based in Washington, D.C. Founded in 1963 by Marcus Raskin and Richard Barnet (two former aides to Kennedy administration advisers), it has been directed by John Cavanagh since 1998. Its work is organized into over a dozen projects, all of which work collaboratively.
The IPS Report
A few report tid-bits. Better yet, a few report 'shark-bites'.
In 2009, average jobless benefits nationwide stood at $305 per week, or $15,860 per year.(33) Benefits do vary dramatically by state, from a maximum $230weekly in Mississippi to $628 in Massachusetts.(34) Some relatively high-income states pay very low weekly unemployment
benefits, just $330 a week, for instance,in New York. Nationally, reports the Joint Economic Committee, weekly benefits average only 74 percent of the poverty threshold for a family of four. (35)
• The $598 million combined compensation
of the top 50 CEOs in our layoff leader survey
could cover the cost of average unemployment
benefits to 37,759 workers for an
entire year - or provide nearly a month of
insurance for each of the 531,363 workers
their companies laid off.
• Johnson & Johnson CEO William Weldon's
compensation of $25.5 million could provide
all 8,900 workers laid off by Johnson
& Johnson, with average unemployment
benefits for more than nine weeks.
• Schering-Plough CEO Fred Hassan's compensation
of $49.6 million could provide all
16,000 workers laid off by the firm formed
when Schering-Plough and Merck recently
merged with average unemployment benefits
for more than 10 weeks.
• Hewlett-Packard CEO Mark Hurd's compensation
of $24.2 million could provide all
6,400 workers laid off by Hewlett-Packard with
unemployment insurance for more
than three months.
The report is actually in pdf. download form via a page link. The article that I have linked is a basic website introduction and a bit of a teaser. Unfortunately, it is like most long reports, it is wrought with information that only the seriously interested will read. I can assure you that it is alarming in its entirety.
The report is astonishing. On page nine(9)of the report, you will find a chart that illustrates executive compensation, reduction in workforce. and how much bailout money the company received.
One of the reports authors recently spoke with a local radio commentator. The author , Chuck Collins, mentioned that the new Wall Street legislation includes completely advant-garde (my words) approach to shareholder input into executive compensation. Collins stated (parapharased here)that while that specific part of the legislation is no panacea, it is a start in the right direction.
Is there any reason to doubt why major corporations are sitting on their capital? While some will say, "Bunko Pardu, you are an anti-business curmudgeon". In addition to personal gain from hording capital, I suggest taking the 'hording capital' premise and consider how hording impacts the unemployment rate. I also suggest consideration of how the unemployment rate impacts the coming elections (2010 and 2012). Yes, Ed Schultz, I have fallen in line with or argument.
Moreover, think in terms of how these corporations will donate to political campaigns. If I (the hypothetical CEO) am audacious and callous enough to perform such financial acts, is it not conceivable that I would join-in on impacting the unemployment picture for sake of political gain? Is it not conceivable that I would contribute to conservative campaigns with their mantra and moniker of FREE/Market No Regulation?
Mr.Collins used the word "Rabid" to denote his opinions of some of Americas Corporate elite. He also used the word 'Betrayal' in characterizing actions of these groups of elite Americans.
Final thought, if the CEO is compensated as indicated, give some thought to his (nine out of ten are male)management team. You will find more compensation overkill. On the other end of the pay scale, another example shows a corporate CEO earns 263% more than the average wages of certain of his employees.
The dangers in this factual depiction are obvious: another human 'failing' (GREED). A 'failing' that should be obvious to anyone who has a long-term view of America.