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How the hell do we compete with that? At the personal level, it is a difficuly answer to give, but one competes just like in any other industry: improvement and, if necessary paycuts.

Become more managerially aware by taking management courses at night; go to workshops that teach new SD tools; branch out EARLY into new languages and dialects being developed. Finally, develop new ideas and, if they are not taken up by your employer, start your own company: software is almost unparalleled in terms of the absecne of barriers to entry.

What is not right, however, is the expectation of $100/hour developed in 1990s, whereas a Ph.D. in mechanical engineering with 20 years of experience makes only $95K/year. When people do not want to take paycuts --- this is more typical in the unionized shops, of course --- the companies prefer to lay off or sell themselves, lock stock and barrel.

Become more managerially aware by taking management courses at night; go to workshops that teach new SD tools; branch out EARLY into new languages and dialects being developed. Finally, develop new ideas and, if they are not taken up by your employer, start your own company: software is almost unparalleled in terms of the absecne of barriers to entry.

Sound advice.

What is not right, however, is the expectation of $100/hour ...

Which brings me back to CEO/CFO greed.

According to a study from William H. Mercer, an executive pay consulting firm, the average total direct compensation (salary and bonus plus long-term incentive grant values) for CEOs was $5.2 million in 2000, up 13.7% from the previous year. (*)

There is not a shred of evidence that significant compensation of executives has really improved company performance across America. What's probably going to happen now, in reforms, just like companies have their annual accounting audits and their tax audits. What's going to happen now is that there's going to be a performance audit as compared to pay. We've looked at companies now for some years and we've done these executive report cards. (*)

Currently, "a CEO who gets a bonus or profit sharing [worth tens of millions of dollars] in 1999 for good results doesn't have to give any money back when profits turn down in 2000 or 2001," Lewin says. "There's something wrong with that picture." (1)

CEO Stats: Compensation

87% of CEOs say they are fairly compensated, 2% say they're overpaid and 11% say they're underpaid (Fortune, November 18, 2002)
A good CEO is worth less than $3 million ($2,846,671) in total annual compensation (i.e., base salary plus annual bonus) according to a recent study conducted by Burson-Marsteller and Wirthlin Worldwide. (Burson-Marsteller press release, October 22, 2002)
CEOs in Biotechnology companies average $513,000 in salary and bonus compensation. (BioWorld Executive Compensation Report 2003)
Today's top chief executives earn more than 60 times as much as President Bush. (The Washington Post, October 2, 2002)
The base pay for chief executives fell 15 percent in the first half of 2002. CEOs also lost 43 percent in bonuses for an overall decrease of 23 percent, according to a survey by Christian & Timbers. (The Boston Globe, September 8, 2002)
In 2000, a CEO earned more in one work day than what an average worker earned in 52 weeks, according to the Economic Policy Institute. This ratio fell in 2001, but remains above historical levels. (The Boston Globe, August 4, 2002)
On average American bosses take home pay packets that are 475 times more than their workers. This survey conducted by Towers Perrin, of S&P 500 leading companies, found that CEOs in America receive more pay relative to workers on the factory floor than any other country.(Management Magazine June 6, 2002)
CEOs of large corporations made 411 times as much as the average factory worker in 2001. (Business Week May 6, 2002)
In the past ten years, average wages increased 36%. For CEOs, it was 340%. (Business Week May 6, 2002)
In 2000, CEO compensation was 531 times that of the average worker. In 1980, CEO compensation was 42 times that of the average worker. (Business Week April 22, 2002)
The average compensation for chief executives declined 8 percent to $15.5 million, according to a survey of 200 large companies conducted for Money & Business by Pearl Meyer & Partners. (The New York Times, April 7, 2002)
One out of five CEOs received no bonus in 2001and the typical bonus fell 23 percent, according to Pearl Meyer. (The New York Times, April 7, 2002)
CEOs in other countries are increasingly compensated with a mix of salary, benefits and long-term incentive programs that mirrors that of American bosses, according to a recent study from New York consulting firm Towers Perrin. American CEOs are still paid more than anybody in the world. (Chief Executive, March 2002)
In an executive-compensation survey of 50 large companies overall pay for the nation's top CEOs fell 4% in 2001, with the average CEO earning $10.46 million, according to Pearl Meyer & Partners consultant. (Business Week, March 18, 2002)
On average CEOs earn 66% more when their pay is tied to performance. That works out to be $406,000 a year for CEOs of companies that use corporate performance measures, compared to $244,000 for companies with no performance measures, according to a study of 273 companies in the Toronto region. (National Post, February 25, 2002)
Salaries and bonuses of CEOs dropped a median of 2.9% to $1.24 million, according to a William M. Mercer Inc. survey of 100 companies' proxy statements. (The Asian Wall Street Journal, March 6, 2002)
Median salaries and bonuses slipped 7.7% to $1.32 million last year, while pay and potential gains from stock options grants boosted overall compensation 24% to a median $10.2 million, according to an exclusive USA Today and Investor Responsibility Research Center (IRRC).
Base salaries for the top dogs continued to rise, up 6% through June 15, but are well short of the standard 15% increase recorded from 1999 to 2000. (Los Angeles Times, July 15, 2001)
Only three of the 30 highest-paid female executives of 2000 occupied the corner office. (Business Week, April 23, 2001)
The average CEO earned $13.1 million in 2000. Cash compensation for the CEOs at 365 of the largest U.S. companies increased 18%in 2000, while total pay increased 6.3%. Salaried workers received a 4.3% pay hike. (Business Week, April 16, 2001)
The average CEO pay in the U.S. has risen from 42 times the average blue-collar worker's salary in 1980 to 475 times the average blue-collar workers' salary in 1999, according to the AFL-CIO. (Chief Executive, February 2001)

In case your interested, the average CEO compensation works out to almost $600/hour if he worked 24/7/365.

Kinda makes you wonder, doesn't it?