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Now Earning 278 Times More Than Average Worker, New Study Shows CEO Pay Has Grown More Than 1,000% Since 1978

Originally published at http://www.commondreams.org/news/2019/08/14/now-earning-278-times-more-average-worker-new-study-shows-ceo-pay-has-grown-more

The writers need to get their facts straight.

In one of the tweets shown in the article, (and the headline) they note the ratio is 278:1. In another tweet, it notes it was 361 in 2018. So, in one year, either executive pay fell by 23%, employee pay went up by 30% or some combination of the two. Or perhaps the statistics are just crap.

Also ignored is the fact that looking at a 40 year horizon is a fallacy since there are only 3 CEOs who have been in place 40 years (all at companies they founded, owned or inherited) - Warren Buffet, Bill Marriott, and Roger Penske. In fact, CEO turnover has been increasing steadily over time, with the median CEO lasting only 5 years.

Additionally, the overwhelming majority of the value that gets reported in proxies (generally 3/4 or more for CEOs) is the projected value at the time of grant of equity awards (options, performance and restricted stock grants) whose real value could be significantly greater or could be zero, depending on how the stock and the company actually perform.

Yes, CEOs do earn significantly more than the median employee. But take these numbers with a significant grain of salt.

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They claim those high salaries justified as it the only way to attract competent employees. The salary paid is a reflection of the persons competence.

This means all of those people serving you at minimum wage are incompetent. Take your business to a Company that hires competent workers.

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Seems to me, in a controlled capitalist system, the more corrupt and unethical you are, the more money you make.

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You only obfuscate the obvious. Are you an apologist for the CEO class? Is that where your loyalties lie or just with pure capitalism – which we really don’t have anyway. I guess if I take your comments with the grain of salt they deserve - I can kind of laugh at what fools exist in our society.

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If they paid the CEO a little less, they might not be paying the workers minimum wage but hey - that is what they are there for.

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It is well documented on my Hate page and elsewhere within that page that this inequality is the main driving force behind hate, violence and extremism’s of all brands.

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1978 was the year that New Deal financial industry regulations started being decriminalized. By 1999 what had been previously been called “white collar” crime had become business as usual.

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We need a max and min wage scale

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How about worker co-operatives or worker collectives without all of the hierachy they love to create.

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Like Mondragon. Not Perfect but in the right direction.

And worker OWNED business. Like the grocery store chain in Wisconsin now moving into N. IL
Woodman’s

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True, and also your post applies to politics, the more corrupt and unethical politician you are, no matter what Party, the higher you go. And what more proof does one need than Trump and Nancy Pelosi !

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Did you read my last line? I am not “obfuscating” anything - it is the authors who are demonstrating that they don’t understand the numbers they’re presenting.

Employee ownership is the way to go. I’ve had the pleasure of working in two employee owned companies over the years.

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When do people like CEOs do their work because they enjoy it, not for the money?

How low a compensation level would they take for the honor and pleasure of the work they do?

Also ignored is the fact that looking at a 40 year horizon is a fallacy since there are only 3 CEOs who have been in place 40 years (all at companies they founded, owned or inherited) - Warren Buffet, Bill Marriott, and Roger Penske. In fact, CEO turnover has been increasing steadily over time, with the median CEO lasting only 5 years.

Interesting point about CEO turnover.

The reason CEO turnover is higher now is that it makes little to no sense to work extended years towards the end of one’s life if you’ve amassed a huge amount of wealth. Just working 5 years most large organization CEO’s will have added $100 million to their nest egg.

Other than that, the CEO tenure is irrelevant to the ridiculous, outsized compensation they receive.

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Plus your net worth increases ten fold, Term limits!

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Hi WWSmith:
Are you overlooking the fact that it seems that stock value can be a kind of fraud today too?Since the people at the top of the companies get stock gifts ----but they also start buying up their own stock—so that it appears that a stock is doing well, but it’s only those at the top giving the APPEARANCE of stock growth. Buying up one’s own stock certainly makes it appear that a stock is doing great. Isn’t this appearance of stock moving up in the market , isn’t this often just a deception?

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The entire stock market a con and is used byy the uber wealthy to milk wealth from the system. I mentioned how Wall Street would love to get a hol dof those Social security monies. The republicans have long wanted to privatize Social security and there a reason for this.

With that added pool of Capital the hedge fund managers can pump and dump. Mr 1 percent buys stock in XYZ company at a dollar per share. The group mamaging the Social security fund would then use the peoples money to drive that stock up to 20 dollars a share. Mr 1 percent would then sell it at 20. Mr 1 percent would call up that broker and thank him for the 19 dollars per share in gains.

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Hi SuspiraDeProfundis:
Wow, if the stock market bandits pulled that off, stealing social security—we would see a lot of dead politicians—and sadly the innocent would be hit in the same crossfire as the guilty.

It’s bad enough that other nations see how America doesn’t keep its word now but when other nations see how America treats its own citizens-----then America would be 100% Untrustworthy and never recover trust in anything from anyone ---- this would be a state which the stock market players should keep in mind because once they have fallen in this way, the stock market will never rise again.
the Plague of the World as it plagues against its own citizens.

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