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 ...
I am 100% correct, and you are 100% incorrect.
Stockholders voluntarily transfer their property to the corporation. Stockholders KNOW that some of their property will make its way into the pockets of CEOs. They, knowing this, voluntarily transfer their private property to CEOs. When I buy stocks (frequently) I know the CEO makes a ton of cash, but I voluntarily transfer my wealth to him anyway.
If the GOPe thinks they can run on THIS they’re suicidal.
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Nobody has every accused the GOPe of being sane.
It not our money or our business. Period.
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It may be our business — in theory. But as a practical matters, its theirs. :)
One thing I’ve found to be universally true: Those in power want to stay in power and they want more of it. CEO’s are no exception to the rule. The BoD’s should check their excesses but generally don’t because they are all on the same team. We shareholders are basically just spectators watching the game from the stands. Occasionally we might get to boo a player off the field, but not very often. ;)
As we grow up in life we learn that there are no 'easy' jobs and there is no free lunch. Hiring someone is hard work and firing him is also hard work. The fact that it's harder work than what our precious 'rank-and-file' do is the reason that managers and owners get paid so much more.
Legally your statement is incorrect. Shares are ownership. The exchange for shares goes into working capital of the enterprise.
Stockholders own the entire enterprise.
As a former mutual fund manager and hedge fund manager I am familiar with what is purchased, who legally owns the company and how CEOs are compensated.
I defy you to tell me what part of the below is incorrect.
I am 100% correct, and you are 100% incorrect.
Stockholders voluntarily transfer their property to the corporation. Stockholders KNOW that some of their property will make its way into the pockets of CEOs. They, knowing this, voluntarily transfer their private property to CEOs. When I buy stocks (frequently) I know the CEO makes a ton of cash, but I voluntarily transfer my wealth to him anyway.
Hiring someone is hard work and firing him is also hard work.
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Middle management does most of the hiring and firing. The folks in senior management are (or should be) visionaries who steer the ship towards various strategic objectives and keep it on course. They may be involved in some higher level hiring and firing decisions, but generally not.
To you point about firing, nowadays its a risky thing to do that is fraught with legal, personal and other ramifications. And yes, people who hire and fire are making vital resource decisions for the company and should be well compensated for this important activity. Not everyone can do it.
Wait a minute. I’m sorry. You mean the part where I said “it’s not our money.”
So, we are BOTH correct. When I said it’s not our money, I was referring to cry babies on the sidelines moaning about CEO pay, people who don’t own stock in the company. I was not, of course, referring to stockholders, as my post makes abundantly clear when I talk about stockholders giving THEIR OWN money to CEOs.
Sorry for the confusion.
1. Those crybabies have no business complaining.
2. CEO salaries come from voluntarily transferred wealth.
Does this account for the $100 million payouts CEO’s get when they run a company into the ground and get fired?
We need an H-1B visa program for CEOs. Obviously at this price there must be shortage.
Come on man.
IBD is becoming the “onion” of business pubs.
IIRC corporate CEOs once used to make about 30 times what their employees earned. In recent years this became more like 300 times what employees earn. I haven’t followed this for awhile so I don’t know what the compensation numbers are like now.
When the guy on the floor can do what the CEO does (same skill set), then you might have an argument.
You don't know.
What we know is that we've got to stop the crazy left-wingers that want to steal from those of us that nave been working for a living. We also know that the AFL-CIO is in business to sell their product. Richard L. Trumka has ruled the AFL-CIO for over seven years and he keeps his perks/salary/compensation/benifits/retirement/goldenparachute top secret on his private email server. He's also made sure that the AFL-CIO employees are not allowed to unionize so Trumka can shaft them w/o fear of strikes.
--and it's all perfectly legal...
Union leaders are corrupt. Politicians are corrupt. CEO’s of large corporations are corrupt. Pick your poison.
--and that's a good thing because people being different and wanting/being able to do different things is what makes the world go around. We were talking about stockholders being corp owners and Mr. Frog was saying the degree firing bad CEO was difficult meant shareholder control was lacking.
My thinking is that owning stock is difficult and so is being a shareholder --but that's how shareholders do the difficult job of owning the corp.
OK, so you may even say that you're corrupt as all hell but I'm telling you that the vast majority of humankind (including union leaders, politicians, and CEO's and even used-car salesmen and lawyers) are very good people who know right from wrong and are honestly trying to do good.
--and fwiw, my personal guess is that even you are in fact not that bad a guy either.
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