Executive payment soaring as wages flat line

CEO pay in the United States was up 12 percent in 2010, averaging about $9.6 million. In the final quarter of 2010 corporate profits grew faster than they have in over 60 years-30 percent. As CEOs get richer, the workers making them rich get poorer because the rising cost of food and gas is taking a bigger chunk out of stagnant wages. Post resource – CEO pay soars as flat middle class wages erode with inflation by MoneyBlogNewz.

CEO pay increases
coming from the hard workers

At a time when millions of Americans simply hope they keep their jobs, average CEO pay has risen to surpass pre-recession levels. Even as employment is increasing, employee pay is not, however CEO pay is. Over 13 million people are currently looking for work, yet CEO’s are getting by on what they already have and increasing their own wallets. There is no incentive to retain workers or entice new employees. CEOs from nearly every economic sector bailed out by taxpayers’ averaged 12 percent raises last year. Yet, private sector pay rose by about 2 percent. Joblessness hovered at 8.8 percent in March. Economist predicts the unemployment rate will continue to stay high for some time.

The CEO stock portfolio increases

The richest CEO of 2010 was Phillipe Dauman of Viacom, making in only nine months $84.5 million. The rising price of oil and gas has been good to Ray Irani of Occidental Petroleum, who was the runner up with $76.1 million, a 142 percent pay increase over 2009. The third highest paid CEO was Larry Ellison of Oracle bringing in a modest $39.5 million. Wall Street has made it so CEOs are making more money with stock choices than they have made since 2007. Several CEOs played the stock market well by taking stock options when they had no value, knowing the market would one day recover. CEOs are now cashing in on their stock opportunities and making the millions they anticipated. There was well over $20 million made by several CEOs cashing in their stock opportunities according to USA Today.

Middle class income his hard by commodity price increases

The huge CEO pay increases are hard to swallow for the American middle-class, who has watched income stagnate for a generation. In the last five months, income for U.S. hourly workers have not increased one penny, according to the Bureau of Labor Statistics. United States workers are not getting raises, yet the cost of products is ever increases. Prices of commodities and income are basically going in opposite directions. Gas costs alone eat up more than half the average worker’s wage increase. The average middle class employee buys about 12 gallons of gas a week alone. In 2010 it was about $40 cheaper per month to fill a gas tank. Yet the average weekly raise only increased by about $18.

Citations

New York Times

nytimes.com/2011/04/10/business/10comp.html?_r=2#38;ref=business

USA Today

usatoday.com/money/companies/management/2011-04-04-1Aoptions04_ST_N.htm

NPR

npr.org/2011/04/10/135272006/paychecks-cant-keep-up-with-rising-prices