Posted on 06/14/2016 5:35:35 AM PDT by expat_panama
In an annual ritual that takes place every May, the AFL-CIO releases its “Executive Paywatch” report to publicize what it considers to be the excessive compensation of the CEOs of America’s biggest multinational firms.
The nation’s largest labor federation reports this year that the typical CEO running an S & P 500 firm received total compensation of $12.4 million in 2015 while the average rank-and-file worker was paid just $36,875 — a pay gap of 335-to-1.
But the AFL-CIO can only get such an inflated pay ratio by applying a series of statistical sleights...
...the AFL-CIO only considers a very small sample of S&P 500 CEOs to get its 335-to-1 ratio. Using a larger, more representative sample of CEOs produces a much smaller pay gap.
For example, the AFL-CIO’s own website reveals that the average CEO compensation of Russell 3000 companies was $5.7 million last year, which would cut the 335-1 ratio by more than half to only 155-to-1.
Further, BLS data show that there are actually more than 20,000 chief executives employed nationally who “manage companies and enterprises” at an average annual salary of $220,700...
...If the AFL-CIO could confiscate that entire amount and redistribute it... ...rank-and-file worker would receive an annual increase in pay of only $63 before taxes, or about 3.6 cents more per hour...
...not that surprising that the AFL-CIO would engage in an apples-to-oranges comparison...
...mainstream media, politicians, and the general public never question the statistical legerdemain used by the AFL-CIO to produce the massively inflated pay ratio year after year...
...there’s no support for the AFL-CIO’s rhetorical claim that this slice of the “economic pie” is what’s driving stagnant pay for some American workers.
(Excerpt) Read more at investors.com ...
Those Leftists. So much smarter than everyone else, Eh?
That story warmed my heart. :)
I am so happy to be OUT of the Rat Race. It’s going to suck if I ever have to go back in, LOL!
You & me both. I was just thinking the other day how for so many years (decades?) I considered myself an absolute first rate engineer but right now I'd never do that work again. Part is the state of the art has evolved a lot, another part is making/developing/establishing rep w/ all new contacts, but the big thing is I'm simply no way willing to put up any more w/ all the nonsense and having to be nice to complete idiots.
I work for myself and I'll keep it that way thank you ;)
Exactly. I’ll soon be 100% debt-free with the sale of my house, and I have a cozy place to live now (160 acres!) and I can bake bread, sew on a button or stitch up a wound if need be. I can shoot straight and can grow my own veggies and small livestock and can entertain myself with or without the Internet.
I’ve invested wisely, have always lived below my means and am as cheap as they come, so I can make what I have now last to the bitter end.
I’ve only been out of the workforce since the first of the year, but expending energy for cash from others already feels like a million years ago! I should have done this when I was 30 and still full of vim and vigor, LOL! :)
Still a gap.
Is your comment a criticism? Of course there's a gap...for many valid reasons. Are you suggesting that everyone should be paid the same, so no gaps exist?
You could probably count on one hand, minus the thumb, for how many times this has occurred. Off the top of my head, I can think of maybe two. These stories are outliers, and not at all representative of all CEOs.
If the guy on the floor messes up, the damage is limited. If the CEO messes up, the whole company is at risk.
Funny. I just ran across the story this morning of Nardelli getting booted from Home Depot for doing such a horrible job and receiving a $210 million lump sum payment for the effort.
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