Class Warfare Blog

September 16, 2016

CEO Pay Scam … by the Government!

You have all heard about how CEO pay (aka remuneration) has risen from comfortable levels, roughly 20 times the average worker’s pay in the mid-1960s, to mind-numbing levels today, roughly 373 times the average worker’s pay in 2014. The sense of outrage is palpable, but not enough to have anything done about it. What would you say if I told you that the 373:1 ratio was vastly understated? That the actual ratio is closer to 950:1?

How is this possible? It is possible because the Securities Exchange Commission (SEC), the government watchdog of said statistics, uses an estimate of the value of stocks held that works okay for ordinary people, but CEOs are not ordinary people. Their stock is worth more than that estimate suggests because they are better able to time when to cash in their stock because, they, unlike “ordinary people” have information, and decision making power, that allows them to maximize the value of their company’s stock.

So, how much are we talking about? In one such instance, a pharmaceutical corporation CEO was listed as making $19 million in such compensation in 2014 in SEC documents, but on his tax return, he listed a different number, $192.8 million. Similarly in 2015, the SEC list him at $18.8 million as his “fair-value compensation” while his actual take home was $232 million. And the SEC figures are what are used to calculate the ratio of CEO to average worker pay.

As if we needed more evidence that the 1% have scammed the system, it is clear beyond any shadow of doubt that America is government by the “e Rule” them that has the gold, make the rules.m, it is clear beyond any shadow of doubt that America is government by the Golden Rule: those that have the gold, make the rules.

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9 Comments »

  1. Crony capitalism at its worst

    Like

    Comment by lbwoodgate — September 16, 2016 @ 9:39 am | Reply

    • It is systemic, taken for granted by the powers that be. They don’t even bother to challenge their own metrics from time to time, they are just the given system. There is no value in rocking the boat. (Of course, they are in the boat and we are in another that is wallowing in high seas.

      On Fri, Sep 16, 2016 at 9:39 AM, Class Warfare Blog wrote:

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      Like

      Comment by Steve Ruis — September 16, 2016 @ 9:46 am | Reply

  2. Obscene doesn’t even begin to describe it.

    Like

    Comment by john zande — September 16, 2016 @ 11:51 am | Reply

    • And the “I’m mad as Hell and not going to take it anymore” crowd is voting for Trump. Where were they when we needed help to get Bernie over the hump?

      On Fri, Sep 16, 2016 at 11:51 AM, Class Warfare Blog wrote:

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      Liked by 1 person

      Comment by Steve Ruis — September 16, 2016 @ 12:09 pm | Reply

      • You think Sander’s will get a cabinet slot?

        Like

        Comment by john zande — September 16, 2016 @ 12:39 pm | Reply

        • I doubt it. Most politicians can’t abide what they think of as a “loose cannon.”

          I think of Bernie as the person who gets the ball rolling. Others will now have to keep the ball rolling. What I hope is that when the dust settles, the results will be like the winner ends up with 45% of the votes and the “loser” with 36%, and then 9%, 4%, etc. Some bright young politician thinks a) that they cannot possible get the Republican nomination, and b) the odds they get the Democratic nomination are quite low, but this new third party (I hope.) It is not inconceivable to get more than 36% in the next election, to bump that moribund second party into third place and if you can do that, then it is possible to end up on top the next go around. This is why I hope all of those who cannot vote for neither Trump nor Clinton with vote for “Somebody Else,” anybody, I don’t care. I just want to get a low percent of votes for that second place voter.

          Our system of forcing people to choose just from two candidates (don’t throw you vote away on so-and-so he can’t win) that forces results like 54% to 45% with 1% voting other, the climb from 1% to 45% is ridiculous, but 9% or 12% to 36%, now that might be doable. So, a new progressive/democratic socialist party … if created … could build up to replacing one of the two now dominant parties and that opens up the whole ball of wax, so to speak.

          On Fri, Sep 16, 2016 at 12:39 PM, Class Warfare Blog wrote:

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          Like

          Comment by Steve Ruis — September 16, 2016 @ 1:05 pm | Reply

          • I was going to vote for Jill Steiin simply because other than being the next best thing to Sanders it wouldn’t have hurt to vote for her since Texas traditionally goes GOP. back in June trump was leading Clinton in Texas by only 6 points but now however a recent WP poll actually shows Hillary in a dead heat so I am going to have to vote for Clinton in the hopes of seeing Texas go blue one more time before I die. 🙂

            Like

            Comment by lbwoodgate — September 16, 2016 @ 1:23 pm | Reply

            • Special circumstance always apply and you’ve earned the right.

              On Fri, Sep 16, 2016 at 1:23 PM, Class Warfare Blog wrote:

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              Like

              Comment by Steve Ruis — September 16, 2016 @ 2:13 pm | Reply

          • Always had a “viable” third party in Oz, the Democrats, whose motto is “Keep the bastards honest.” They typically hold a small number of seats in the senate, and therefore, generally, the balance of power.

            Like

            Comment by john zande — September 16, 2016 @ 2:10 pm | Reply


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