Corporate Ceos Of Low Wage Employees - 1049 Words

In 1980, CEO s made 42 times the pay of an average worker. The disparity has grown so much that in 2013 the CEO to worker pay ratio was 744:1. America is supposed to be a land of opportunity, a country where hard work and playing by the rules would provide working families a middle-class standard of living. But in recent years, corporate CEO s have been taking a greater share of the economic wealth while wages have stagnated and employment has not fully recovered. Highly paid CEO s of low wage employees are fueling this growing economic inequality. In 2013, CEO s of the SP 500 index companies received on average, $11.7 million in total compensation, according to the AFL-CIO s analysis. While CEO pay remains extremely high, production and nonsupervisory workers took home only $35,000 on average in 2013, and a full-time worker making the federal minimum wage earned only $15,080. One of the famous terms being used in correlation to fired CEO s is â€Å"golden parachutes†. This is where CEO s are being paid when they leave the company they are working for and they receive a compensation that is far greater than the salary that they take home. In other words, you get paid more to be fired, than you do if you were asked to work there. According to a study done by GMI Rating Report, 21 CEO s received more than $100 million each in â€Å"walk away† packages. Companies like General Electric, Home Depot, Exxon, and ATT have collectively provided nearly $4 billion in golden parachutes.Show MoreRelatedManagement Of Practice Case Study998 Words   |  4 Pageshave been identified are old employees (50s-60s), young employees (students), and shareholders. These three stakeholders could be affected the most by the CEO’s decision. Firstly, old employees who work for the company for many years should have larger proportion of the company’s employee wage than young employees. For first option, this option will cause biggest impact for old employees as they already have high monthly salary, however they will have to reduce their wages to be hourly salary and mightRead MoreAnalysis Of Aetna s Workplace Culture930 Words   |  4 Pagesif they are an insurance company or not. The CEO’s mantra on having a successful workplace simply states â€Å"let’s invest in our people† (Aetna CEO: Let’s, 2015). Bertolini himself was no stranger to struggle in his personal life, having his son beat an incurable cancer as well as he himself getting into a skiing accident where he was given his last rites (O’Donnell, 2015). Having gone through these life altering events, his outlook on how employees should be treated and the resources they shouldRead MoreCeo Compensation1988 Words   |à ‚  8 Pagesmatter and then the pay-performance connection within organizations. We will also touch on the real wages of employees and how America compares to international companies. We will finish our argument with some recommendations that we feel will help make organizations as a whole better. High Pay, Low Performance Financial Crisis It is shown in several studies that high CEO pay is linked to low company performance. In the article, â€Å"Chief Executive Compensation: An Empirical Study of Fat Cat CEOsRead MoreSocial Conflict Theory : Class Conflict Essay1299 Words   |  6 Pageseconomic system, industries and trades are controlled by private owners for profit. The private owners in America will stop at nothing to drive up profits, including paying their employees starvation wages, having welfare pick up their slack, and outsourcing American jobs. Corporations will even stoop as low as not giving employees enough hours to be considered full-time, just so they can get around providing them with health insurance. Even though they provide a service to the economy, the damage theseRead MoreWhy Do Chief Executive Officers?1034 Words   |  5 Pageseveryone, though they are already responsible to employees, Board of Directors, and company shareholders. CEOs are trying to appease interest groups and other out side stakeholders when considering the company’s business deals. Some organizations have been successful with corporate social responsibility (CSR), while others have failed. To what degree should the federal government be involved with CSR? Companies create jobs; keep unemployment rates low, and invest in their communities purchasing fromRead MoreMinimum Wage Laws For The United States Essay1742 Words   |  7 PagesThe minimum wage is the mandated price floor paid on hourly or daily basis for the employees regulated by the government or the union. In â€Å"Federal Minimum Wage†, New Zealand and Australia enacted the first minimum wage law during the late 19th century to prevent employers’ exploitation of workers. In 1912, Massachusetts passed the first minimum wage legislation in the US that was enforced for women and children, and fifteen more states followed in the next eleven years. However, the Supreme CourtRead MoreRetail Market Of The Retail Industry 1726 Words   |  7 PagesSales, People, Employees, Politics, n.d.). Although, the large retailer has had some controversial issues about its operating approach, the company has continued to rapidly grow in the retail industry. The retail industry has been a huge success all over the world and the continued success of the retail industry is mainly due to the high focus company’s put on their customers. Customers are the most important aspect of the retail industry and companies treat them as such. CORPORATE STAKEHOLDERS WhenRead MoreCase Study : The Dark Ages Attitude Toward Management1543 Words   |  7 Pagesranging from â€Å"aggressive to abusive†. This especially irritated staff as management promised this issue would not occur in the past yet it happened again. Staff are also looked down on as â€Å"low-skilled† whereas supervisors say this is â€Å"far from the truth†. An issue can be raised where 92% of HealthCo employees are woman yet management is dominant by males. This could be the case of a sexist CEO who prefers men over woman as managing members of the business. In my opinion the issueRead MoreEthics of the Textile Industry1463 Words   |  6 Pagesbecause of their incredibly low income, while Australian teenagers are oblivious to this and the story of the person behind the machine who has made their clothing. A  sweatshop  is  a  manufacturing facility where workers endure poor working conditions, long hours, low wages and other viol ations of labor rights (Oxfam, 2012). Sportswear brand Nike illegally forced people in Vietnam to work 65 hours per week, for 15cents per hour, Nike publicly denies violating the legal minimum wage of $45 per month, butRead MoreUnited States Income Distribution867 Words   |  3 Pagesan increase from 27% in 1996 to 45% in 2001. The study also suggested that although there is income inequality amongst the different households however there is inequality even amongst the top 10% of earners as public figures like entertainers and CEO’s have increased their pays much faster than professionals who require high skills like investment bankers and lawyers. Writer Annie Lowrey in her online article The Rich get Richer through the Recovery, writes that ever since the US Government started