Despite a pandemic, CEO pay rose 11.1% from 2020 to 2021—and 1,460% since 1978. CEOs have been able to pocket fat paychecks without ramping up their own productivity. But workers? They’re more productive than ever but their pay hasn’t kept up.
Clearly, CEOs aren’t 1,460% more productive than they were in 1978. What we have is a broken system. Corporate boards and executives are colluding rather than imposing any discipline on outrageous pay. Board directors running America’s largest public firms need to stop doling out outsized compensation packages to CEOs—CEO pay is growing faster than even the stock market and is far outstripping the pay of other earners in the top 0.1%.Economic Policy Institute
Ranting about – a relatively few – CEOs compensation is a farce. Who cares, it only affects their shareholders and then very little. Their pay has zero impact on workers. Outrageous? Why, because you don’t have some of it? Who says it’s outrageous? None of my business.
CEO pay is not based on productivity – another use trigger words. Their pay is based on both short and long-term results for shareholders, the company’s owners. Is there sometimes a mismatch between pay and results, sure there is. But still only the business of those responsible for running the company and it’s shareholders.
What is outrageous is using the generic “CEO” when in fact we are talking about perhaps 100 to 200 CEOs of the very largest companies. What is outrageous is linking pay to the pandemic, trying to create division among Americans claiming some CEO pay is unfair to them under overused and misleading concern over inequality.
“CEO pay is growing faster than even the stock market” is a false fact. S&P500 index was 95.10 at the start of 1978 and 4,766.18 at the end of 2021 – over 5011% increase in the index. If one bought & held & reinvested all dividends the total growth is over 15210%. 1460% growth is a poor return compared to the stock market no matter how you look at it.
How about the 75 members of congress and Dr Fauci who made money in the stock market during the pandemic in 2021 with what is suspected of them using insider information?
Why not redistribute some of Dr. Fauci reportedly $5 million he made off of the stock from the vaccine makers? What did he do to earn it? And why is he the highest paid governmental official at the federal level? Yes I don’t like him but I still object to an administrator who is making more money than other administrators who have thousands of more employees with an equally large budgets. What does he do for his salary that many be many times his employees?
If he really didn’t use insider information to make his gains in the stock market, then he is no different than those of us with 401Ks and investment IRAs. I can’t fault his investments if they were legal. He can keep his money.
I don’t blame any CEO for making as much money as their board of directors will pay them. If your boss offer you hundreds of thousands of dollars for doing the same job are you going say no? Are you going to figure out the percentage that should be given to each of your fellow employees instead? Or are you going home and telling your spouse that you got a raise?