Monday, December 12, 2005

Executive Pay

Executive pay ratio around the world relative to worker pay.

Germany 12 to 1
Japan 11 to 1
France 12 to 1
Italy 20 to 1
Canada 20 to 1
South Africa 21 to 1
Great Britain 22 to 1
Hong Kong 41 to 1
Mexico 47 to 1
In the USA an executive makes 475 times the average worker's salary.

This is why the bottom 80 percent of the nation's household control only 17% of the nation's wealth.

Source PBS

Why do we allow this to happen in an age where 45 million workers are without health insurance and rising health insurance costs eat up our paychecks? Meanwhile, companies are going bankrupt and workers are losing their pensions while CEOs continue to receive bonuses. Delphi made news for proposing 90 million dollars in bonuses for its executives while in bankruptcy while seeking a 60 percent pay cut for its workers.

Another Indiana company, Kimball Industries is doing the same. Daniel Lee of the Indianapolis Star writes about how Kimball's stock has declined 29 percent over the last year. From fiscal year 2003 to 2005, the top 5 executives at Kimball's compensation has grown 88 percent. What can we do to stop this trend? I am open for suggestions.

5 Comments:

Blogger Moulton said...

It's just another example of corruption and inequity under the color of law.

Corporations, like Condominiums, are a creature of the law. They are not governed or regulated by natural law, but by artificially crafted rules and regulations.

These artificially constructed entities are like Grendel's Monsters, capable of endless vampiric regeneration.

Compare the corrosively corrupt abuses found in American law-driven enterprises to what's going on in China.

December 13, 2005  
Blogger lemming said...

But, of course, trickle-down economics works.

That's why I'm paid less than minumum wage to keep tuition costs down...

December 13, 2005  
Blogger Nölff said...

Wow.
Reaganomics... I don't think it works

December 13, 2005  
Blogger Moulton said...

Disequilbrium in the economic reward structure works a little like leaving the tap open in your bathtub. Eventually it overflows, if the trickle down the drain doesn't keep up with the gushing rate of flow from the tap.

Here in the US, the gushing rate of flow into the tub where those in power bathe in luxury, compared to the trickle-down-the-drain dregs for those of us living in the U-bend sectors of the economy is a dispiriting and irritating fact of life, strife, and plumbonomics.

December 14, 2005  
Blogger indygirl said...

That is so crappy.

December 14, 2005  

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