CEO salaries now 400 times that of an average worker's check

[Judi Lynn]

Jan. 18, 2006, 12:35AM
CEO salaries now 400 times that of an average worker's check


By DAVID IVANOVICH
Copyright 2006 Houston Chronicle Washington Bureau

WASHINGTON - Federal regulators launched an effort on Tuesday to force corporations to more clearly disclose just how much they're paying top executives and directors.

In a bid to enable investors to compare one company against another, the Securities and Exchange Commission has proposed a slate of new rules that would require corporations to lay out — in plain English — the total compensation packages they pay top executives and directors.
(snip)

Under the proposed rule approved unanimously by the five-member commission, companies would be required to calculate a single figure that quantifies all aspects of direct compensation — salary, bonuses, stock options and perks.

Companies also would have to reveal how much they would have to fork over in retirement benefits, in severance payments if the executive is ousted or as a golden parachute if the corporation is taken over — all potentially eye-popping figures for shareholders.
(snip/...)

http://chron.com/disp/story.mpl/front/3594322.html
(Free registration required)

[NewJeffCT]

1. They get a ton of "tax" gross-ups, too

So, if the head of Home Depot has a corporate jet available to him, it may work out to $500,000 of compensation per year... that amount is usually taxable. But, now many top execs are getting extra tax gross-up money to cover the taxes they would pay on these "perks"

Believe it or not, I read that in the Wall St Journal a few weeks back... no link, as the Journal is a pay site. I had read the actual hard copy.

[xchrom]

2. there is a belief that by making ceos and others

packages transparent that shareholders will start to put pressure on the company to change some of that -- after all that money can be rightly said to be the shareholders -- i think that is a mistaken belief.

there is a lot of give when you are making 400 times what the average worker makes -- you can make some dimunition in this and still make out like a thief.

second no one making this kind of money politically neutral -- they are doing everything they can to benefit their class -- and they have a lot of resources to bend things their way.

they are so powerful in fact that they are a new branch of american government. institutionalized for all that they are not spelled out in the constitution.

[pokercat999]

7. Simple solution....institude a MAXIMUM wage pegged to the

minimum wage, say 10 times the minimum. Of course the greedy bastards will find a way around it like having 25 "jobs" with their fellow CEO's companies.

So I guess the real solution is to realize there is no such think as justice in the world, just gett'n your own, anyway you can?

[Cessna Invesco Palin]

11. You can gain a lot more benefit...

...by introducing a proper progressive tax scheme. However, under the current set of brilliant leaders, we're cutting taxes on the rich.

[dapper]

13. Salary Cap!

I was working for a job that at the level I was at, I was making too much money, i reached the "cap".

I never thought about it at the time but the CEO's salary was not capped. In fact, as I was capped, he made about a cool 750,000 more that year. (not including company stock, options, perks)

Dap

[modrepub]

12. Why does this matter?

Most CEOs own millions of shares in thier own company (plus the possiblity of super shares with multiple votes per share), mutual funds can own significant #s of shares (usually vote with board) and if you don't turn in your proxy your votes are counted as approving whatever the board recommends. In short most of the stock votes I've participated in for approving CEO and board memeber salaries are rigged from the get go. Unless there's a power struggle or a large shareholder is unhappy the vote is just a formality. It may make CEOs and board members a bit bashful if the number is too large but if they stick together it doesn't matter.

[Irreverend IX]

3. I read an investment guideline document from a few decades ago...

It said not to invest in any company where the president made more than 20 times the lowest-paid employee.

[HysteryDiagnosis]

4. So now..... we can invest in nothing. nt.

[Phoebe Loosinhouse]

5. The most powerful way to fight this would be for employee shareholders

to become activist. These outrageos salaries are the results of the CEOs and their enabling boards viewing their respective companies as giant cookie jars that they can just plunder at will. This money is rightly shareholder money that could be used for dividends, or could be re-invested into the company for R&D or towards better salaries and benefits for the larger body of employees. PUBLICLY held companies have actual fiduciary duties to their shareholders which these salaries violate.

[xchrom]

8. that's the thinking behind making these ''salaries'' more transparent.

i just don't think that will work period.

oh it might work for a while -- but these folks are immensly powerful.
and they are continuousy working their will on the system.

unless there is some general agreement that corporations can be more closely legislated -- then we are in for a bumpy ride.

[Phoebe Loosinhouse]

9. I think it is more likely to work than

" a general agreement that corporations can be more closely legislated" Did you mean regulated? I think it would be great to see a crowd of under-paid, no healthcare WalMart employee shareholders stand up with the embarassing truth at a shareholders meeting. Even if Wal-Mart fired them, they would still have a right to be present as shareholders. I can dream, can't I?(Everyone needs to watch "The Solid Gold Cadillac" with Judy Holliday.)

[xchrom]

10. corporations are part and parcel of state and federal government today.

workers at walmart willingly turn down union representaion that would make their lives better -- even thogh there are threats from the company that shut select stores if that happened.

there's now general consensus that would tie corporations to the health and well being of the workers - in spite of information that is fairly well known that they screw the worker.

i.e. the investor class has no real incentive to be on the side of the worker -- that's not why they are investing.
they are on the side of their investments -- i.e. making money with out having to labour for it.

[area51]

6. registration

For websites that demand registration, try bugmenot to keep from giving out personal info.

[Kablooie]

14. The real problem is there are 400 CEO's and only one worker.