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.

 

And

 

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.

 

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2 Comments

  1. David Manners
    September 07, 2010 20:31

    They do say, Mike, that birds of a feather flock together – but I’m no ornithologist so I couldn’t say

  2. Mike Bryant
    September 07, 2010 17:27

    … and judging by Mark Hurd’s hiring by Oracle so soon after HP asked him to leave for failing its business conduct standards it seems how many allegations of sexual harassment you’ve accumulated also helps.

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