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Ratio of CEO pay to the average worker's pay

Unless there are just no figures from the Middle East I find it hard to swallow that the Saudi Princes and other oil guys aren't making at least that much more than the average person in those countries.
 
Sean Renaud said:
Unless there are just no figures from the Middle East I find it hard to swallow that the Saudi Princes and other oil guys aren't making at least that much more than the average person in those countries.
Click to expand...

Saudi princes aren't CEOs. They're owners. Of Royal Assets.
 
Sean Renaud said:
Unless there are just no figures from the Middle East I find it hard to swallow that the Saudi Princes and other oil guys aren't making at least that much more than the average person in those countries.
Click to expand...
Their ratio is probably 10,000:1.
 
Quite frankly for corporations that earn over $500 million a year or more the compensation ratio is even worse than what LT posted, it's on the order of 531:1. Compared to minimum wage it's on the order of 821:1.

Essentially this has all occurred in the past 20 years, prior to 1990 the avg. compensation ratio was 24:1.

Part of the problem is the US tax code. Most of these corporate CEO's are being compensated with stock as opposed to salaries. The long term capital gains tax is substantially lower than the salaried tax rate, so stock is the preferred compensation method. It would seem simple to just raise the capital gains rate, but then the small investor and retirement funds get screwed. As many of these retirement funds are union managed accounts there is no way congress is going to make any big move in that direction.

Of primary importance is the fact that many of these CEO's are also the Chairman of the Board. As the Chairman appoints the board members, and the members set the CEO's compensation package there is an inherent conflict of interest with this arrangement. The CEO is responsible to the board and the fiduciary responsibility of the board is to the stock holders. Outlandish compensation packages are contrary to that fiduciary responsibility. Most of these CEO's are being compensated far beyond any improvement they've made to the corporations cash or stock appreciation. This dual responsibility is an area where congress could act and most certainly should take a look.

Ishmael
 
A thought. ?? Is the ratio stated between the CEO and his or her employees or workers in that country as a whole? If it is the latter I would expect the ratios to much higher.
 
Ishmael said:
Quite frankly for corporations that earn over $500 million a year or more the compensation ratio is even worse than what LT posted, it's on the order of 531:1. Compared to minimum wage it's on the order of 821:1.

Essentially this has all occurred in the past 20 years, prior to 1990 the avg. compensation ratio was 24:1.

Part of the problem is the US tax code. Most of these corporate CEO's are being compensated with stock as opposed to salaries. The long term capital gains tax is substantially lower than the salaried tax rate, so stock is the preferred compensation method. It would seem simple to just raise the capital gains rate, but then the small investor and retirement funds get screwed. As many of these retirement funds are union managed accounts there is no way congress is going to make any big move in that direction.

Of primary importance is the fact that many of these CEO's are also the Chairman of the Board. As the Chairman appoints the board members, and the members set the CEO's compensation package there is an inherent conflict of interest with this arrangement. The CEO is responsible to the board and the fiduciary responsibility of the board is to the stock holders. Outlandish compensation packages are contrary to that fiduciary responsibility. Most of these CEO's are being compensated far beyond any improvement they've made to the corporations cash or stock appreciation. This dual responsibility is an area where congress could act and most certainly should take a look.

Ishmael
Click to expand...

Gross Conceptual Error
 
Ishmael said:
Quite frankly for corporations that earn over $500 million a year or more the compensation ratio is even worse than what LT posted, it's on the order of 531:1. Compared to minimum wage it's on the order of 821:1.

Essentially this has all occurred in the past 20 years, prior to 1990 the avg. compensation ratio was 24:1.

Part of the problem is the US tax code. Most of these corporate CEO's are being compensated with stock as opposed to salaries. The long term capital gains tax is substantially lower than the salaried tax rate, so stock is the preferred compensation method. It would seem simple to just raise the capital gains rate, but then the small investor and retirement funds get screwed. As many of these retirement funds are union managed accounts there is no way congress is going to make any big move in that direction.

Of primary importance is the fact that many of these CEO's are also the Chairman of the Board. As the Chairman appoints the board members, and the members set the CEO's compensation package there is an inherent conflict of interest with this arrangement. The CEO is responsible to the board and the fiduciary responsibility of the board is to the stock holders. Outlandish compensation packages are contrary to that fiduciary responsibility. Most of these CEO's are being compensated far beyond any improvement they've made to the corporations cash or stock appreciation. This dual responsibility is an area where congress could act and most certainly should take a look.

Ishmael
Click to expand...

I've read this several times and clearly something is going over my head. It sounds like Ishmael is in agreement with LJ. He certainly doesn't sound like he thinks this is an ideal set up. Since that's not possible I'm either reading this wrong or someone killed the real Ishmael and is posting in his place.
 
Sean Renaud said:
I've read this several times and clearly something is going over my head. It sounds like Ishmael is in agreement with LJ. He certainly doesn't sound like he thinks this is an ideal set up. Since that's not possible I'm either reading this wrong or someone killed the real Ishmael and is posting in his place.
Click to expand...
WTF are you talking about... oh. Dude, that's one of my alts.
 
Sean Renaud said:
I've read this several times and clearly something is going over my head. It sounds like Ishmael is in agreement with LJ. He certainly doesn't sound like he thinks this is an ideal set up. Since that's not possible I'm either reading this wrong or someone killed the real Ishmael and is posting in his place.
Click to expand...

Every once in a while LT coughs up some real, or close to real, facts. This is one of those times.

Ishmael
 
What a crock!

No citation on these so called facts. There are a hell of a lot of corporations out there who can't possibly have the means to pay someone at these levels.
 
Confucius say:

Man who puts nose in others' business...

...will always have other noses in his.
 
I've been meaning to do this, but haven't gotten around to it.

LJ_Reloaded, I want to thank you for representing your fellow liberals so well. I tip my hat, and wish nothing but the best for you.

That is all.

(Don't mean to hyjack the thread. LJ just dosen't seem to have PM's active)
 
RagsNRiches said:
Yea, yea, yea...

And where's the chart for professional athletes?

And where's the chart for all the pukes in Hollywood making many millions every year for shit movies?

What the hell? Are we in kindergarden here?!!
Click to expand...

The Playground called...

...they want your panties back.
 
LJ, Ishmael and Garbage Can all seemingly in agreement on something. Okay. It's official I'm more than a little frightened here.
 
Sean Renaud said:
LJ, Ishmael and Garbage Can all seemingly in agreement on something. Okay. It's official I'm more than a little frightened here.
Click to expand...
I'm staying indoors tonight. I was supposed to go get more cabbage for my lumpia wraps but, fucking ay. I'll make do with what we've got. This is a bad omen. :D
 
LJ_Reloaded said:
I'm staying indoors tonight. I was supposed to go get more cabbage for my lumpia wraps but, fucking ay. I'll make do with what we've got. This is a bad omen. :D
Click to expand...

You may as well get the cabbage. I mean this is crazy bad not just regular bad. I don't think you can protect against it.
 
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