CEO’S PAY JUMPS IN 2012, EMPLOYEES PAY NOT; SURPRISED?

Median pay for a CEO jumped to $9.7 million in 2012; pay for U.S. workers rose 1.6 percent last year, not enough to keep up with inflation.

The median wage in the U.S. was about $39,900 last year.

The old argument for higher CEO salaries continues; a need to pay CEO’s well so they can attract the best talent which is in the interest of shareholders. Considering the number of talented people unemployed I would think you could pick up good help at a very reasonable price at this time.

Judging the performance of many CEO’s whose companies are not doing so well, I don’t understand why they don’t get cut while their companies are performing poorly. Instead they get fired and leave with a large parting bonus for screwing up.

Meanwhile our governor who earlier pushed for judges to make more money in order to attract good judges, the same bull shit as the CEO crap, has stated state employees won’t receive a raise this year. What’s the matter with paying the workers a decent salary so government can attract good employees?

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6 thoughts on “CEO’S PAY JUMPS IN 2012, EMPLOYEES PAY NOT; SURPRISED?

  1. In 1980 CEO’s averaged 42 times average employee pay. The rate today is around 354 and goes up to over 1,000. The US ranks 93rd in the world in income equality.

    Bloomberg did a pretty good article on CEO pay back in April, charting out ratios of CEO to employee pay in 250 companies.

    http://go.bloomberg.com/multimedia/ceo-pay-ratio/

    An interesting tidbit – since 1966, the inflation adjusted increase in average worker pay for the bottom 90% of the US population is $59 (through 2011). Average pay from 2009 to 2011 actually fell 4% for this group. One out of every four working American’s today makes $10 an hour or less.

    Also, do you know what the pay ratio is of DE State employee vs. private sector. I’ve seen salary statistics for the Federal level showing pay rates for similar jobs are double the private sector rate. Political statistics are ALWAYS slanted to meet a desired outcome, so I’m not sure how reliable the data is.

  2. One of the big reasons that I left Corporate America was just this mis- distribution of wealth. And, on the inside these executives jump from one company to another for huge bonuses and leave as soon as their agreement is over !!!

  3. Its always fun to beat on the guy who’s got more than you, but we all play into the game. How do you think, in an economy that’s depends on consumer purchases for more than 70% of its GDP, we can continue to grow while wages for the bottom 90% of the population are stagnant or falling for more than 40 years? The answer – debt. The American dream, and the CEO salaries it supports, is an illusion. Its built on a quicksand foundation of debt. Every credit card purchase you make, car loan you take on or house loan you mortgage feeds the system you decry as unfair. Do you ever pause before swiping your credit card to think of who’s really benefiting. Cui bono? We’ve all been sold a bill of good and our government has been complicit at every step.

    Debt is the real story of wealth re-distribution.

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