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How Much Is Too Much

In: Business and Management

Submitted By fairlee07
Words 600
Pages 3
How Much is Too Much

Many Americans today are angry. Displeases because of the painful recession and irate over outsized executive compensation packages at the very Wall Street firms widely blamed for the economic turmoil. Whom, many believe have rigged the game so that top level executives are rewarded handsomely even when they fail.
A sharp increase in productivity over several years along with many companies enjoying record profits have only led to executives taking an increasing piece of the pie while those who have created the wealth (workers) have only seen their salaries stagnant. CEOs are being paid too much and it has little to do with their performance. These individuals might have worked hard to get there, and that is good. But if you said, “If you work harder, you would get paid more” that should mean teachers, nurses, police officers, and etc., should be paid a lot more than what they are currently being paid.
In part, the issue is about equity – or the lack of it. Compensation for senior executives, especially CEOs, has climbed to levels that strike many as excessive under almost any circumstances. The Corporate Library reports that CEO pay at the nation’s 500 largest firms averaged about $10.9 million a year – plus another $364,000 in perks (Schings, 2014). The gap between the boss and workers has also stretched to levels that many find difficult to comprehend. The Institute for Policy Studies estimated that the average CEO earned about 319 times more than the average worker in 2008, compared to a multiple of 42 in 1980. The sums paid to executives on Wall Street are greater still, routinely reaching the tens of millions (Schings, 2014). Pay norms are so high in the financial services sector, for example that $17 million bonus paid to J.P. Morgan Chase Company Chairman James Dimon has been called a “concession to criticism.”(In 2008, Dimon’s bonus was $28 million. (Schings, 2014))
When compared to other countries, American CEO’s make a lot more money than European countries. CEOs at Japan's top 100 companies by market capitalization earned an average of around $1.5 million, compared with $13.3 million for American CEOs and $6.6 million for European chief executives at companies with revenues of higher than $10 billion, according to an analysis of 2004-06 data by Towers Perrin, a Stamford (Conn.) human resources firm.
America has become lost in greed & selfish corporate ideals! We (the citizens of the U.S.) need to wake up and start demanding change to ensure that our own children, who will probably be laborers just like most of us, want have to struggle. CEO's cannot exist without us workers, and they should not be paid such enormous wages, receive bonuses (while the real workers don't get anything), have umbrella clauses which ensure when they are fired they leave with millions (when we get fired we file for unemployment which is nothing compared to our wages or we find another job). America has become very one sided; only looking out for the wealthy. Why does it take 2 jobs to maintain a household these days? Why do your children owe more than a house payment when they get out of college? Until the people unite & demand our country is for the people corporate rule & CEO wages are only to become more outrageous while we struggle more and live less!

Works Cited
Schings, S. (2014, February 19). Society for Industrial & Organizational Psychology. Retrieved from Society for Industrial & Organizational Psychology: http://www.siop.org/Media/News/ceos.aspx

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