This blog is of, by and for the progressive members of our Jefferson County community. Our mission is to provide information about fellow progressives for all to view, to provide a forum for forward looking candidates and to offer other varied items of interest. Your opinion is important to this blog and if you wish to write us an item or send us a picture please email it to THIS BLOG IS NOT AN OFFICIAL BLOG OF THE JEFFERSON COUNTY DEMOCRATIC COMMITTEE

Friday, January 30, 2009

Jefferson Democrat

CEO's and Their Pay. Someone Explain Why!!

In 2007, the CEO of a Standard & Poor’s 500 company received, on average, $14.2 million in total compensation, according to preliminary numbers from The Corporate Library, a corporate governance research firm. The median compensation package received was $8.8 million.

[1]A reasonable and fair compensation system for executives and workers is fundamental to the creation of long-term corporate value. However, compensation for top executives has grown at an unprecedented rate in the past two decades resulting in a dramatic increase in the ratio between the compensation of executives and rank-and-file employees.

The chief executive officers of large U.S. companies averaged $10.8 million in total compensation in 2006, more than 364 times the pay of the average U.S. worker, according to the latest survey by the United for a Fair Economy.

[2] Boards of directors are responsible for setting CEO pay. Frequently, however, directors award compensation packages that go well beyond what is required to attract and retain executives and reward even poorly performing CEOs. These executive pay excesses come at the expense of shareholders, as well as the company and its employees.
According to a recent study by ERI Economic Research Institute and The Wall Street Journal, executive compensation grew substantially faster than corporate earnings in the past year. The study of 45 randomly selected public companies found that executive compensation increased 20.5 percent from a year ago, while revenues grew just 2.8 percent.

Read on...