CEO Greed

The Seattle Times published an article today on executive pay: still more evidence of the stunning extent of corporate greed in America. In 1980, CEO compensation was about 40 times the average employee’s wage. By 2007, CEOs raked in 370 times more than their typical worker. WAMU chief, Kerry Killinger, collected $32.5 million in 2006-07 while he orchestrated the largest bank failure in U.S. history. But that’s peanuts compared to the $270 million CEO Richard Fuld collected in the five years prior to Lehman Brothers’ demise. Executive incentives are totally screwed up: corporate boards structure packages so the CEOs collect big bucks no matter how the company performs. Maybe it would help if the government taxed these exorbitant salaries and bonuses at some ridiculously high rate: maybe 90%.
  1. #1 by pjb on 26-Jul-2010 - 2:27 pm

    If Obama has his way it will be 100%. Don't you wish they would have limited salaries while you were still working?

  2. #2 by djb on 27-Jul-2010 - 12:28 am

    I've thought CEO's were overpaid and undertaxed even when I worked for Xerox in the 1980's and the chasm between CEO and worker bee salaries has ballooned since then. I'd be happy to see tax rates returned at least to where they were in the pre-Bush era. U.S. businesses seemed to have done OK when execs were taxed at 39%.

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