Originally Posted by HonestChieffan
How wide spread is this behavior? Do you have some information on the ceo pay levels in various corporations and industries that show its widespread?
How many CEOs have taken a no raise or a reduction?
Is the data different for companies that are growing in profitability vs those flat or in a decline?
oops never mind. Here is a link to 2009 pay for CEOs. Looks like many actually did take a reduction.
I have a lot more faith in the Wall Street Journal to get the story right, and they showed 10% increases on MEDIAN executive pay. Which means that even halfway down the list, you're seeing exorbitant pay increases. This wasn't based on average pay. Executive compensation has become so complicated that the source of data is pretty critical.
I don't know the answer to growing in profitability vs. those flat or in a decline. But given that this economy is in a recession and most companies heavily skew toward the latter, it should be unsettling that we're seeing pay increases at all, let along exorbitant increases.
And keep in mind... this is a minimum of what they're making. We're not factoring in things we may not realize they are making but were difficult to account for. And we're not even touching the key discussion point that many executives are paid on options, which means they make a shitload of money when their company grows and they make a lot of money if the company tanks too. So we're not even factoring in the economic impact of our executives gambling on decisions to boost their own pay -- that needs to be factored in to, because the risk of a bad decision becomes an added cost to the corporation.