Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
US Relates Size Of CEO Pay To Number Of Layoffs
It’s enough to turn you communist. According to the US Institute for Policy Studies, the companies which laid off the most people last year, paid their CEOs the highest remuneration.
The 50 companies which laid off the most workers in the US in 2009 paid their CEOs 42% more than average CEO pay.
Collectively the 50 companies laying off the most workers laid off a total of 531,363 people last year.
Collectively the CEOs of those top 50 lay-off companies were paid $598 million.
The $598 million would pay average unemployment pay for the 531,363 laid-off people for a month.
Two of the most awful examples were:
American Express CEO Kenneth Chenault who, after getting $3.39 billion tax-payer bailout via TARP and laying off 4000 people, had a pay packet of $16.8 million.
Mark Hurd, the ousted HP CEO, who had $24 million pay while sacking 6,400 people.
Maybe the MBA/accountants have devised a ratio – the PTL (Pay-To-Layoffs) ratio – to calculate CEO pay.
Even the Americans, with their irrational fear of socialism, have to recognise that their corporate leaders are taking the piss.
Mass servitude is no price to pay for the freedom of a few to get stupidly rich.
TOMORROW MORNING; Top Ten Semi Suppliers In Q2Tags: institute for policy studies, irrational fear, kenneth chenault, mark hurd, servitude