Comments on: Happy Labor Day, America http://www.neptunuslex.com/2007/09/03/happy-labor-day-america/ The unbearable lightness of Lex. Enjoy! Fri, 10 Feb 2012 06:48:26 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: fliterman http://www.neptunuslex.com/2007/09/03/happy-labor-day-america/comment-page-1/#comment-412420 fliterman Tue, 04 Sep 2007 17:51:25 +0000 http://www.neptunuslex.com/2007/09/03/happy-labor-day-america/#comment-412420 Casca -- Then we implied 'Bolsheviks' will hang with some odd and interesting company - stockholder groups, the Council for Institutional Investors, and many well known capitalists including Warren Buffet, who has long been outraged and has spoken out repeatedly on excessive CEO compensation. Lex -- After 7 years of benign neglect, the government can (and should) do a number of things: Adjust accounting rules to better reflect and govern CEO compensation; improve disclosure rules to expose "hidden" compensation; increase SEC investigations in areas like back-dating stock options; vigorously prosecute corruption; and adjust tax laws to lessen the excesses. Morale and production suffer within a company when the hourly wage earner sees what amounts to legalized theft from his company. But the poor worker can do little about it. However, the excesses have become so great that stockholders, boards of directors, and large instructional investors are finally stepping in. As happened in the early '90's, the pendulum is about to (hopefully) reverse, to halt these excesses. Rewarding departing CEO's many excessive millions, especially when their company has lost billions during their tenure just isn't right. It's time for both the public and private sectors to join in checking this abuse. <b>What's at stake is nothing less than the public trust, essential to a thriving free-market economy</b> Casca — Then we implied ‘Bolsheviks’ will hang with some odd and interesting company – stockholder groups, the Council for Institutional Investors, and many well known capitalists including Warren Buffet, who has long been outraged and has spoken out repeatedly on excessive CEO compensation.

Lex — After 7 years of benign neglect, the government can (and should) do a number of things: Adjust accounting rules to better reflect and govern CEO compensation; improve disclosure rules to expose “hidden” compensation; increase SEC investigations in areas like back-dating stock options; vigorously prosecute corruption; and adjust tax laws to lessen the excesses.

Morale and production suffer within a company when the hourly wage earner sees what amounts to legalized theft from his company. But the poor worker can do little about it.

However, the excesses have become so great that stockholders, boards of directors, and large instructional investors are finally stepping in. As happened in the early ’90′s, the pendulum is about to (hopefully) reverse, to halt these excesses.

Rewarding departing CEO’s many excessive millions, especially when their company has lost billions during their tenure just isn’t right. It’s time for both the public and private sectors to join in checking this abuse.
What’s at stake is nothing less than the public trust, essential to a thriving free-market economy

]]> By: lex http://www.neptunuslex.com/2007/09/03/happy-labor-day-america/comment-page-1/#comment-109669 lex Tue, 04 Sep 2007 14:27:15 +0000 http://www.neptunuslex.com/2007/09/03/happy-labor-day-america/#comment-109669 Having heard you hold forth on this topic before fliterman, I anxiously await your recommendations on how the government will right this market-driven imbalance and formulate the calculus of "correct" CEO compensation. Having heard you hold forth on this topic before fliterman, I anxiously await your recommendations on how the government will right this market-driven imbalance and formulate the calculus of “correct” CEO compensation.

]]> By: Casca http://www.neptunuslex.com/2007/09/03/happy-labor-day-america/comment-page-1/#comment-109666 Casca Tue, 04 Sep 2007 13:54:30 +0000 http://www.neptunuslex.com/2007/09/03/happy-labor-day-america/#comment-109666 We'll be hanging Bolshiviks after the revolution this time comrade. I'll save you a spot on the lamp post next to Pelosi. We’ll be hanging Bolshiviks after the revolution this time comrade. I’ll save you a spot on the lamp post next to Pelosi.

]]> By: fliterman http://www.neptunuslex.com/2007/09/03/happy-labor-day-america/comment-page-1/#comment-412419 fliterman Tue, 04 Sep 2007 05:05:12 +0000 http://www.neptunuslex.com/2007/09/03/happy-labor-day-america/#comment-412419 Left out of the article is the fact that the 20 highest-earning U.S. executives made three times as much as their European counterparts … even though the European companies generated $19 billion more in sales. CEOs in large American companies made 364 times the pay of the average U.S worker. IOW, they made in one day what it took an average worker an entire year to earn. In the decade that ended in 2006, CEO pay rose roughly 45 percent, adjusted for inflation. Yet for the same period, the minimum wage in real dollars <b>decreased</b> by 7%! In 2006, the 20 top hedge fund managers' average income was an incredible, $657 million for the year. James Simons of Renaissance Technologies had 2006 compensation of a staggering $1.5 billion – yes billion - for the year! Yes, the American worker is indeed the world's most productive. Too bad others reap the excessive rewards of his exceptional labor. <a href="http://www.ips-dc.org/reports/070829-executiveexcess.pdf" rel="nofollow">Link (pdf)</a> Left out of the article is the fact that the 20 highest-earning U.S. executives made three times as much as their European counterparts … even though the European companies generated $19 billion more in sales.

CEOs in large American companies made 364 times the pay of the average U.S worker. IOW, they made in one day what it took an average worker an entire year to earn.

In the decade that ended in 2006,
CEO pay rose roughly 45 percent, adjusted for inflation.
Yet for the same period, the minimum wage in real dollars decreased by 7%!

In 2006, the 20 top hedge fund managers’ average income was an incredible, $657 million for the year. James Simons of Renaissance Technologies had 2006 compensation of a staggering $1.5 billion – yes billion – for the year!

Yes, the American worker is indeed the world’s most productive. Too bad others reap the excessive rewards of his exceptional labor.

Link (pdf)

]]> By: Casca http://www.neptunuslex.com/2007/09/03/happy-labor-day-america/comment-page-1/#comment-412417 Casca Tue, 04 Sep 2007 01:58:43 +0000 http://www.neptunuslex.com/2007/09/03/happy-labor-day-america/#comment-412417 Just think how far ahead we'd be if people worked all the hours they billed. Just think how far ahead we’d be if people worked all the hours they billed.

]]> By: Tom G. http://www.neptunuslex.com/2007/09/03/happy-labor-day-america/comment-page-1/#comment-412418 Tom G. Tue, 04 Sep 2007 01:17:56 +0000 http://www.neptunuslex.com/2007/09/03/happy-labor-day-america/#comment-412418 Happy Labor Day & nice new look. Those concerned with EU opinions need not be concerned - they are slowly modeling themselves on us - not sure that's such a great thing - in 10 years overseas I never confused my neighbors' friendship with the spew from their governments. The ones I work with today may say some stupid things but it's hard to ignore they voted with their feet. Happy Labor Day & nice new look. Those concerned with EU opinions need not be concerned – they are slowly modeling themselves on us – not sure that’s such a great thing – in 10 years overseas I never confused my neighbors’ friendship with the spew from their governments. The ones I work with today may say some stupid things but it’s hard to ignore they voted with their feet.

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