American living, then and now (1975 vs 2005)

[VJW]

Re: American living, then and now (1975 vs 2005)

I believe it was legislation on CEO salaries that contributed to the massive increase in executive pay over the years. COngress legislated (I believe) that any salary or salary and bonus over, I think a million dollars, couldnt be deducted as an expense. Instead companies started creating options and deferred compensation arrangements to make that pay available.

Actually, stock options currently make up just 31 percent of a typical CEO’s compensation, down from 69 percent in 2001.

BTW, in 1980, CEO pay was 20 times the average hourly wage of workers. By 2000, that ratio rose to more than 500 times, and is still 300 times the average hourly wage of workers.

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[cercis]

Re: American living, then and now (1975 vs 2005)

All I'm saying is that companies complaining about the cost of a "lowly employee" is really stupid when they are spending millions on CEOs and boards of directors when none of them do work that is that MUCH more valuable than the work of the "lowly employees". It's a strawman argument, period. They want to direct attention to "our costs of employment are soooo high, it's all their fault we aren't making maximum profits".

It takes all of standing up and saying "Bull! Cut your salaries and bonuses and then I'll listen to your complaints." I plan to buy stock in Costco simply because they have a pay structure in place that does not allow their CEO to be paid exorbitant amounts AND they pay their other employees well.

[jmjj215]

Re: American living, then and now (1975 vs 2005)

I could see myself living in Canada... Not so much India...

I see

[jmjj215]

Re: American living, then and now (1975 vs 2005)

All I'm saying is that companies complaining about the cost of a "lowly employee" is really stupid when they are spending millions on CEOs and boards of directors when none of them do work that is that MUCH more valuable than the work of the "lowly employees". It's a strawman argument, period. They want to direct attention to "our costs of employment are soooo high, it's all their fault we aren't making maximum profits".

It takes all of standing up and saying "Bull! Cut your salaries and bonuses and then I'll listen to your complaints." I plan to buy stock in Costco simply because they have a pay structure in place that does not allow their CEO to be paid exorbitant amounts AND they pay their other employees well.

Ben & Jerry's as a similar cap I believe.

[CRFSaver]

Re: American living, then and now (1975 vs 2005)

My current company (for this week only) layed off 3,000 people and then proceeded to spend a million dollars to build... a video screen in the lobby. I thought it was a smack to all the employees when they did that.

[jmjj215]

Re: American living, then and now (1975 vs 2005)

The company I work at is laying off 25% of its workforce in the next few months - it definitely makes you look at upper management w/ a bit more scrutiny during these times.