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General News    H1'ed 8/31/19

CEO Salaries Have Spiked 940 Percent Since the 1970s

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How much more than you does your boss make?

That all depends, of course, on many factors: whether your job is unionized, the industry you're in, whether you work in the public or the private sector.

Chances are, though, if your boss is the CEO of one of 350 top public corporations, he or she is making nearly 10 times what you are.

This is the conclusion the Economic Policy Institute (EPI) makes in a report that shows since 1978 CEO compensation has ballooned 940%; worker compensation, in contrast, has hovered around only 12%.

CEOs, according to the study, made, on average, $17.2 million last year.

Putting it into perspective, in 1965, the average CEO-to-average worker salary was 16 to 1.; by 1989, it was 45 to 1.

Last year, the number jumped to 278 to 1.

In 2017, the average CEO took home $18.9 million while employees' wages averaged 0.3%.

One of the study's authors, Julia Wolfe, told The Real News:

"Just as the typical worker's compensation hasn't risen by that much in comparison to CEOs, other really highly paid earners also haven't experienced that extreme increase that CEO pay has. Certainly, they've started earning more in relation to the more bottom, in relation to the lower-level workers who are receiving lower compensation, but it's important to note this because it tells us this isn't just a matter of a reflection of an increased demand for skills, or an increased demand for a certain type of worker, or added value to the economy.

"Really, this is about a differential in power dynamics and the ability to set wages, and these are the people who are in power who are making these decisions. It really reflects that difference, rather than just difference in skill."

There are those who naturally defend this income disparity by claiming CEOs deserve so much more because they are the "most talented" in their respective fields, or that they must fend off inordinate competition from similarly talented CEOs threatening to take them over.

Julia Wolfe responds:

"So that doesn't seem entirely justified when we take a look at our study. I think that especially the extreme degree of this difference really doesn't validate that. And when you look at other high wage earners or the growth in other measures of the valuation of skills out in the market for example, if you take a look at the growth in the college premium in comparison to high school earners you see that has not grown nearly as much as the CEO compensation has grown. So, it's skyrocketing. It's skyrocketing much more quickly and more dramatically than other measures of this demand for different skills, for a market for a particular type of manager, and I think those are all important to note when we look at this. It really doesn't support that argument that these workers are really a different class, adding that much more, that much more competitive, or that there's so few of them that can be doing these jobs."

According to the EPI study:

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Aleksandar Sarovic

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Now, what will you do? Fighting for a minimum wage increase seems all that you have on your agenda. Do you know why? Because the rich made you have this on your agenda. Or even worse, talk about revolution and get nowhere. Elimination of unemployment is all steps needed for turning capitalism in a decent social system. Here is more about it: https://www.opednews.com/articles/Full-employment-is-a-turni-by-Aleksandar-Sarovic-Conspiracy_Economy_Employers_Exploitation-190814-944.html

Submitted on Saturday, Aug 31, 2019 at 1:44:08 PM

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don curry

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CEO wages have increased 940% since 1970.

Look at corporate profits since 1970:

https://fred.stlouisfed.org/series/CP


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They have increased 3600%. The corporations are now global. The CEO has a down-line that includes many people have the same populated down-line of the CEO from 1970. The number of people prospering have "spiked" and include citizens of many countries. The silly indignation of the author is based on either laziness or myopia.

Submitted on Saturday, Aug 31, 2019 at 3:57:53 PM

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Richard Pietrasz

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If corporations earn income based on what their workers do, why haven't workers' wages increased 3600%?

Most CEOs in large corporations do nothing directly for their customers. I have worked for major corporations as direct charge employee providing value to the customer. CEOs are indirect, that is overhead who skim money off the top. Management is valuable if done correctly, but when compensation greatly exceeds replacement cost, that excess compensation is just a burden to both customers and stockholders.

It is also worth pointing out that mergers make corporations look bigger, but do not necessarily increase profit from the previous total profit of the combined corporations. Accounting tricks do not improve value, but they are often very successful at scamming people.

Submitted on Saturday, Aug 31, 2019 at 7:09:28 PM

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click here

Submitted on Saturday, Aug 31, 2019 at 4:47:40 PM

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911TRUTH

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American Feudalism, pure and simple.

Submitted on Saturday, Aug 31, 2019 at 5:23:19 PM

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https://www.youtube.com/watch?v=1szBd9508jY

Submitted on Saturday, Aug 31, 2019 at 6:46:00 PM

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