Posted on 01/06/2015 11:54:49 AM PST by Kaslin
Waging class warfare can get pretty tiresome for some Democrats… Which kinda explains why they have decided to make companies wage it on themselves. As part of the regulation requirements in Dodd-Frank, publicly traded companies will soon have to spend millions of dollars, and hundreds of thousands of man-hours, to officially report how rich their CEO is compared to rank and file employees. According to the Washington Free Beacon:
The provision is backed by labor unions like the AFL-CIO, which seeks to “shame companies into lowering CEO pay.” The price tag of the regulation is expected to be “substantial,” costing more than $72.7 million and over 500,000 hours to comply.
The “pay ratio disclosure rule” will mandate that publicly traded companies report how many times more their CEO makes than the average employee in their annual report. And why? Well… I guess because the millionaires who run unions like the AFL-CIO want to “shame” CEO’s into being a little less rich.
After all, the CEO to rank-and-file ratio isn’t exactly a useful tool for evaluating the profitability of a company, or the value of its product. Unlike reporting top executive compensation (which is already required), the number doesn’t even give prospective investors an insight into the fiscal responsibility of the company’s leadership… Really, it just tells you whether or not “company x” is run by good comrades, or capitalist pigs.
“It would take global companies months and thousands of hours to come up with a completely useless number,” wrote the National Association of Corporate Directors (NACD), commenting on the proposal.
Heck, even the SEC (the group of bureaucrats and unelected regulators who will be tasked with finalizing this rule) say there will be no real use for this information, outside of beefing up Elizabeth Warren’s 2016 talking points. (Okay… I may have paraphrased a little.)
But that kinda brings us to the bigger issue, don’t ya think? Since when did making “a ton” of money (for managing the direction, vision, and operation of a publicly traded company) become a sin? Correct me if I’m wrong, but don’t most of us expect the person who “runs things” to make a bit more than the 18 year old (part time) employee who gathers the shopping carts in the parking lot? It almost seems like there’s a pretty obvious reason for most pay disparities between CEOs and average employees: Running a multi-national restaurant chain tends to demand a substantially higher level of monetary compensation than shoveling French fries into a collapsible cardboard container.
Duh.
The “Help Class Warfare Junkies Feed their Addiction” rule in Dodd-Frank (again – this is paraphrased) essentially requires businesses to spend millions of dollars so they can give the Bernie Sanders and Liz Warrens of the world a piece of useless data. In effect, it is designed to provide the progressive wing of the Democrat Party with some cute talking points, just in time for a Presidential election…
Of course, something tells me the class-warriors in the DNC won’t be in any rush to provide similar “context” to their wealth. I guess some animals are just more equal than others.
How about asking his buddies in football and basketball to do the same.
Your referring to Fox News as Faux shows me were you are coming from and I suggest you crawl back under rock were you crawled out from, you Troll
They will keep piling on until the economy crumbles and takes the entire country down.
Then they will run around yelling how capitalism, free enterprise, and entrepreneurs are the culprits.
How about union boss’ pay vs their member’s .....
I agree. I read years ago that the average ceo made 25 times the average line workers wage in the 20’s thru 40’s. I am and have been in business all my life and feel ceo’s dragging down 100’s of millions /yr is shameful and cheats the stockholders. How many houses and hookers does one guy need?
I refer to them as Faux because they pretend to be Conservative when they are not.
My experience is that union honcho wages are typically not huge multiples of the rank and file. They do get prodigious perks which are difficult to value.
Head of the UAW makes $175k
Teamsters $380,000
SEIU $225k
NYS Teachers union $269k
I’m not a populist, but those numbers are trivial compared to CEO salaries today.
OK, so there will be more private companies and private placements of their equity. Also, if this applies to foreign listed companies as well, they won’t bother to list here.
I'm sure this kind of thing has been going on for a long time. Usually the big $$ come in the form of stock options.
The government does not have the right to do this.
How about if the people in congress and the white house let us know how much they make, how much they get in untaxed privileges, how their pensions and salaries are adjusted for cost of living.
Then maybe the working people would see how much “inequality” there really is.
Why don't they just get over it and try to force everyone to disclose how much money they make? That way, EVERYBODY can be at each others' throats.
Why would you compare union salaries with CEO salaries? How are they in any way comparable?
Right - but what are their salaries compared to the rank and file? What is the average salary of the members? As for CEO’s - they’re responsible for the financial health of their corporation whereas the union heads do exactly what? Threaten strikes?
Somebody asked the question, I provided some data.
I leave it to the smart folks on here to take the discussion forward.
Philip Dru is here, folks.
”State inspection laws, health laws, and laws for regulating the internal commerce of a State, and those which respect turnpike roads, ferries, &c. are not within the power granted to Congress [emphases added].” —Gibbons v. Ogden, 1824.
And more disturbingly, note the Obama Administration’s complete disregard for Jesus’ teaching of Matthew 20:1-16 concerning the rights of the landowner, particularly verse 15.
Most UAW types make between 50 and 100 grand (depending on OT)
So that ratio would be maybe 5:1
Teamsters I think are more varied, maybe we give them 10:1
SEIU is probably more like 25 grand. Another 10:1
Teachers in NYS probably average 70k. So 4:1
Like I said I’m not arguing philosophy here, just supplying data. But a sh!tload of those CEOs charged with providing “financial health” for their companies are rewarded spectacularly for failure. Rick Wagoner walked away from GM with $23 mil.
“I’m sure this kind of thing has been going on for a long time. Usually the big $$ come in the form of stock options.”
The pay in most cases is not the issue but the stock options, that is a huge problem.
“How many houses and hookers does one guy need?”
I’m a CEO and only have one house and zero hookers.
As long as were talking need lets discuss how many pairs of shoes you need.
Don’t worry. The GOP will get right on that!
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