Overcompensation: Tying Corporate Taxes to CEO Pay

By: Wednesday August 6, 2014 3:51 pm

One night last year, as the public debate about economic inequality began to sharpen, California State Senator Mark DeSaulnier (D-Concord) was walking to the Berkeley premiere of a documentary film focused on that very subject. Inequality for All, narrated by former U.S. Labor Secretary Robert Reich, had been executive-produced by the man DeSaulnier was walking with that evening, Stephen M. Silberstein. At the time, DeSaulnier was casting about for ways to attack economic inequality and during their walk Silberstein, a software entrepreneur and philanthropist, mentioned an idea he’d been working on to help tackle the problem.

Until the 1980s, corporate CEOs were paid 30 times the amount the average worker received, but today, according to some conservative estimates, they make about 330 times that.

 

Hostess Liquidation Approved, Along With $1.8 Million in Executive Bonuses

By: Friday November 30, 2012 8:03 am

A federal judge has blessed the Hostess liquidation, after labor and management failed to reach agreement on an equitable solution. This isn’t surprising at all; management was basically set up to liquidate the company and strip the assets. Twinkies and Ding Dongs will survive; the company has solicited several offers for the brands. It’s just the 18,500 employees who will be out of luck; even if some of them get retained after the fire sale, getting absorbed into a new company almost certainly means that they will not all get their jobs back.

Meanwhile the executives will get a BONUS for all this.

Hostess, Baker’s Union Agree to Mediation, Avoiding Shutdown for Now

By: Monday November 19, 2012 1:55 pm

A US bankruptcy judge has prevented the liquidation of Hostess Brands for the moment, suggesting a mediation process between the company and its Bakers Union. Both sides have agreed to the mediation.

Hostess went to Judge Robert Drain to, get this, receive permission to pay out executive bonuses to top officials in the company, even while they seek the pull the company into a liquidation that would eliminate the jobs of at least 18,500 workers.

Break Up the Banks for a Faster Economy

By: Saturday October 27, 2012 12:00 pm

This week, ex-banker Charles Morris, who was featured in the documentary Inside Job, brings us compelling evidence that countries with a large financial sector create lesser economic growth than countries that have restrained that sector. While a well-functioning financial system is key to growth, there’s a balance that needs to be struck.

Morgan Stanley Says the Bankers’ Salaries Are Too Damn High

By: Friday October 5, 2012 7:00 pm

What you hear from bankers to justify their enormous profits is that they must be obscenely overpaid to ensure the retaining of key talent in the organization. It’s worth pointing out that their own bosses think that’s garbage.

How Marginal Tax Rates Play a Big Role in Income Inequality

By: Wednesday July 11, 2012 11:50 am

It’s clear that something happened in corporate boardrooms around the 1970s and through to today, where they decided to give their CEOs massive amounts of money through salary and stock options. And why is that? Well, the fact that the top marginal tax rate had been cut in half, so more of that compensation would actually go to the individual, has to have something to do with that.

CEO Pay Climbs in 2011

By: Monday June 18, 2012 6:48 am

Corporate compensation for the highest paid executives rose again in 2011, though its still below the levels of 2017. Dean Baker has several suggestions for curtailing pre-tax inequality. And clearly this is needed when you look at the rising salaries of our nation’s CEOs.

Shareholders Reject Citi CEO Vikram Pandit’s $15 Million Compensation Package in Non-Binding Vote

By: Tuesday April 17, 2012 1:45 pm

I have mentioned that we will see a wave of shareholder activism this spring, with direct action challenges to the biggest corporations in America. Today Citigroup shareholders voted against the $15 million pay deal for CEO Vikram Pandit and also reject pay plans for two other top executives.

The Liberal Bias of Excessive Executive Pay, and the Fashionable Flaunting Thereof

By: Saturday October 1, 2011 9:00 am

Researchers compared actual productivity data with compensation rates and employee rank note that pay for executives is inflated and for low-level workers is depressed.

Another sign of reality’s well known liberal bias.

Meanwhile, the elites are coming out of their shells and beginning to flaunt their wealth again in their purchases of luxury goods. Ooops — my bad. I mean “hyper luxury” goods. Mere luxuries aren’t sufficient to be able to properly fashionably flaunt yourself any more.

Me, I’m slumming today in my faded jeans with a torn and paint-splattered t-shirt, as it’s painting day in my mansion and I’m really into fashionably flaunting my not-so-hyper non-luxury.

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