Free Republic

A Democratic stalwart warns that labor's old strategy can't win against a new competitive reality. Many of my friends will consider this view heretical. But it is based on stark reality... It can be galling to hear companies argue that they have to cut wages and benefits for hourly workers — even as they reward top executives with millions of dollars in stock options. The chief executive of Wal-Mart earns $27 million a year, while the company's average worker takes home only about $10 an hour. But let's assume that the chief executive got 27 cents instead of $27 million,...

THE NEW CLASS STRUGGLE Forget Marx: Now shareholders, including workers' pension funds, are at war with managerial talent, say ROGER MARTIN and MINHEA MOLDOVEANU By ROGER MARTIN AND MINHEA MOLDOVEANU Monday, July 28, 2003 - Page A9 For much of the 20th century, labour and capital fought vigorously for control of the industrialized economy -- in some countries, control of government and society as well. Now a fresh conflict has erupted. While business won a resounding victory over the trade unions last century, it may not be as easy for shareholders to stop the knowledge-worker-led revolution in business. The rising...

Sadly, during the past year we have read a great deal about the failings of some American business executives, as well as their propensity to pay themselves outlandishly. Jack Welch, former head of General Electric, negotiated a $122.5-million retirement package for himself. The chairman and the then-president and chief financial officer of Enron created pay arrangements for themselves that eventually led to Enron's bankruptcy. The former head of Qwest was paid over $24 million at a time that its stock price had been plummeting for months. Is there any rhyme or reason for these executive pay packages? I seriously doubt...