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.
Agree there’s abuse there ... but look also at sports figures ... some make way more than CEO’s ...
Where does this fascist government get its authority to do this? It’s time to start challenging these commie ‘RAT bass turds and throwing their commie @$$es in prison where they belong.
20 mins from end of the meeting.
3 months of make work before the letter goes out.
That’s true.
But sports players are all “wage slaves”, even if those wages are double digit millions.
They get contracts based on what their managers estimate the amount of value they will provide in the future. And if they fail, the next contract is much smaller or nonexistent.
Now I will also agree there is a huge amount of govt subsidy for sports, be it college football coaches salaries or “free” $725 million stadiums for the pro team like we gave here in Indiana.
A lot of CEO cronyism with corporate boards produces large rewards for ongoing failure. Been there, seen that. Again, I”m not a populist, but if you want a lot of insight on this stuff read Dave Stockman’s book: The Great Deformation.
Because CEOs have very highly paid Executives.
I wonder if NFL and NBA stars will have to show the ratio between their multi-year, 100+ million-dollar contracts and the wage of the guy walking up and down in the seats selling hot dogs? You know, if those big stars just gave up some of their wages, those hot-dog sellers could retire!
If I own stock in a publicly traded company, Mr. president, they answer to me, not you! If I agree with the CEO pay, that’s all that matters. If the other employees in the company don’t like what they are paid, they can step up or find work elsewhere on their own. If it is a profitable, well run company, it will keep good people and make them happy on their own, because that is how a free market works.
Next they’ll require the companies to publish their CEO’s home address and that of their golf club, to make it more convenient for mobs of union protesters.
The thing to me is re: CEO’s - they’re responsible for the financial health of the company. If the CEO is responsible for say bringing in 10 billion in revenue even 1% would be fair compensation. If an insurance salesperson gets 10% of whatever they write then why not ..... see what I’m saying?
It was a dramatic rhetorical question.
Exactly and perfectly explained.
I think you may have your wires crossed, I am a man and as such I have 3 pairs of shoes. High top Redwings steel toed for work, good pair of ball shoes for working out, and a pair of Sunday go to meeting shoes, and that’s it.
Remember John Corzine and his billion theft of customers money and not a single night in jail? The love of money is the root of many evils. I have been ceo of our small family companies and have known and my family helped a couple of people without a pot to pee in or a window to throw it out and they never forgot, they are worth in the hundreds of millions and never forgot who helped them on the way up.
The houses and hookers were my crude idea of humor. One house and no hookers, you sound like an honorable man.
I saw an article on why airfares haven’t and wont drop a lot; in spite of the huge fuel price drop. The reason given was very little competition anymore.
One reason that companies have consolidated; is difficulty in dealing with regulation.
I work in the banking industry; that’s definitely the case in my industry.
More consolidation means larger companies with higher paid CEO’s and management.
So when politicians want to enact legislation to cure some ill; they are actually causing greater concentration in that industry and further driving income inequality.
The correct solution (the one that Reagan saw); is less regulation so new companies can get started.
The cure for income inequality is more people starting and owning businesses; not less.
But liberals don’t want that. They like large concentrations of power that they can control easier.
He’s soooooooooooooooooooo smart.
/S/
(They’re like a bunch of spoiled brats.)
IMHO
Now the real Obama fascism begins.
We were warned much earlier but few listened:
Good Read:
http://www.americanthinker.com/2009/05/barack_obama_the_quintessentia_1.html
Thou shalt not covet thy neighbors goods.
America has witnessed the consequences of a generation inculcated with moral relativity and situation ethics. The ghost of Saul Alinsky lurks behind M/M Obama, Hillary Clinton Rahm Emanuel, David Axelrod, Anita "Mao" Dunn, Valerie whatsherface, and the rest of the Ohaha ilk.
They clearly see themselves as "deconstructionists"----savagely committed to tearing down America's traditions. Every manaical official govt act is dedicated to chipping away at the bulwark of American freedoms.
The Obamanations are a virulent anti-American plague of religion haters.......vacant, surly, Me-First humanoids who worship at The Church of Whatever Works For Me.
Cadres of self-absorbed Obama hires---punks squatting in govt are clearly disturbed---obsessed with religious cleansing and kicking so/con Repubs to the curb.
The Ohaha savages duped the citizenry, led us over a multi-trillion dollar deficit cliff, into massive corrupt bailouts, and atrocities like amnesty.
Their motto: "Everything For Us--Nothing For You."
That same generation inculcated with moral relativity and situation ethics has segued into The Entitlement Generation---better known as "Pay Me--I'm a Victim.
We need to remember that the Obamanoids are ruthless predators w/ no empathy for others and no remorse; anti-social psychopaths who recognize no moral boundaries--aggressively going after what they want, irregardless of the consequences to others.
Paraphrasing Saul Alinsky----the author of evil anti-religious satanism......"they do not have a fixed truth -- truth to them is relative and changing..... they are free from the shackles of dogma."
I would have no objection to a CEO making hundreds of millions as long as it comes in the form of an agreed upon percentage of profits paid on top of a relatively small base salary. What I do object to is large bonuses being paid to a CEO while the company is reporting quarter after quarter after year after year of losses as did one company that employed me for a few years.
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