ANOTHER FACET OF THE AMERICAN ECONOMIC MODEL
AND AN INTERESTING CONTRAST WITH THE FACT THAT THE EARNING POWER OF MOST AMERICANS IS IN DECLINE
CAUSE AND EFFECT?
CEO PAY—UP 997 PERCENT SINCE 1978. The problems with the current American Business Model are so severe that CEO pay is very far from the top. In fact, does it matter at at all?
It might not if a rising tide was genuinely raising all boats. However, it is not.
In the context of the failure of the ABM to deliver the kind of economic wellbeing other systems are delivering—egregious CEO pay matters a great deal. It also shows a marked contempt for corporate employees which is symptomatic of the prevailing authoritarian ethos of much of U.S. management.
The following is from The Fiscal Times of August 6 2015.
CEO compensation in America is the highest in the industrialized world. Pay for the leaders of the largest public firms has gone up 997 percent since 1978, almost twice as fast as the stock market and almost 100 times as fast as compensation for the average worker over the same period.
The ratio between a CEO and the typical worker is now 303:1, up from 20:1 in 1965 (though down from its peak, 376:1, during the dot-com bubble of 2000). Last year, Discovery Communications’ David Zaslav, took home $156.1 million in salary, bonuses, stock options and other benefits. He wasn’t in the top-paid CEO, though: GoPro’s Nick Woodman made $285 million.
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