July 5, 2011--Not to Worry
We should calm down already.
Yes, we know many who are unemployed. Yes, we see all those vacant stores along America's main streets. Yes, our own house may be under water. Yes, we may owe the bank more than our condo is worth. Yes, America owes more than $14 trillion to its creditors. Yes, thanks to the Republicans, we may be about to go into default on our sovereign debt (what we owe the Chinese). Yes, and yes again.
But the Dow Jones Average is about twice what is was when Barack Obama was inaugurated. How good is that? And, above all, our nation's CEOs, who are still laying off workers to pad the bottom lines of their companies, are doing very nicely, thank you.
The New York Times reports that their average compensation packages for 2010 rose--are you seated--23 percent. Don't ask what the rest of us saw in our paychecks last year, assuming we were fortunate enough to still be receiving one. (Article linked below.)
Most generously taken care of was Philippe Dauman of Viacom. He received a whopping $84.5 million for his year of hard work, about 30 percent more than in 2009. CBS, which had another poor year in 2010, nevertheless paid its CEO, Les Moonves, $56.9 million, 32 percent more than the year before. Though at least he figured out a way not to have to resign Katie Couric. Michael White of DirectTV, which at least is doing pretty well, "earned" $32.9 million, 20 percent more; while Disney's Michael Iger, another company that did not soar in 2010, was paid a cool $28 million, about 22 percent more.
In percentage terms, in second place is Glenn Britt of Time Warner Cable who received 40 percent more, but he was topped by News Corporation's Rupert Murdoch who gave himself a 42 percent raise. Thank you Glenn Beck and Sean Hannity and Bill O'Reilly.
Again according to Republican trickle-down ideology, these guys, and they are pretty much all guys, as "job creators" will some time soon stop cutting jobs and begin to do some hiring. Not just lawn care people for their places in Greenwich but maybe a few at their companies.
But if this doesn't help to boost the economy, one thing that surely will work in time is the practice of "grossing-up" executives' salaries. This is the practice of increasing their pay to compensate for any taxes they might have to pay for the perks they receive--use of private jets and company cars for themselves and their families, apartments in multiple locations, and limitless expense accounts that cover personal as well as business expenses. Though since this practice is under criticism by shareholders at a few places it is being scaled back. This thus is serving as another argument for keeping taxes for the super-compensated at historic lows.
Overall, for top executives, 2010 was a very good year. Enough to make them think that happy days are here again. Then why are the rest of us not feeling so optimistic? It must be Obama's fault.
Yes, we know many who are unemployed. Yes, we see all those vacant stores along America's main streets. Yes, our own house may be under water. Yes, we may owe the bank more than our condo is worth. Yes, America owes more than $14 trillion to its creditors. Yes, thanks to the Republicans, we may be about to go into default on our sovereign debt (what we owe the Chinese). Yes, and yes again.
But the Dow Jones Average is about twice what is was when Barack Obama was inaugurated. How good is that? And, above all, our nation's CEOs, who are still laying off workers to pad the bottom lines of their companies, are doing very nicely, thank you.
The New York Times reports that their average compensation packages for 2010 rose--are you seated--23 percent. Don't ask what the rest of us saw in our paychecks last year, assuming we were fortunate enough to still be receiving one. (Article linked below.)
Most generously taken care of was Philippe Dauman of Viacom. He received a whopping $84.5 million for his year of hard work, about 30 percent more than in 2009. CBS, which had another poor year in 2010, nevertheless paid its CEO, Les Moonves, $56.9 million, 32 percent more than the year before. Though at least he figured out a way not to have to resign Katie Couric. Michael White of DirectTV, which at least is doing pretty well, "earned" $32.9 million, 20 percent more; while Disney's Michael Iger, another company that did not soar in 2010, was paid a cool $28 million, about 22 percent more.
In percentage terms, in second place is Glenn Britt of Time Warner Cable who received 40 percent more, but he was topped by News Corporation's Rupert Murdoch who gave himself a 42 percent raise. Thank you Glenn Beck and Sean Hannity and Bill O'Reilly.
Again according to Republican trickle-down ideology, these guys, and they are pretty much all guys, as "job creators" will some time soon stop cutting jobs and begin to do some hiring. Not just lawn care people for their places in Greenwich but maybe a few at their companies.
But if this doesn't help to boost the economy, one thing that surely will work in time is the practice of "grossing-up" executives' salaries. This is the practice of increasing their pay to compensate for any taxes they might have to pay for the perks they receive--use of private jets and company cars for themselves and their families, apartments in multiple locations, and limitless expense accounts that cover personal as well as business expenses. Though since this practice is under criticism by shareholders at a few places it is being scaled back. This thus is serving as another argument for keeping taxes for the super-compensated at historic lows.
Overall, for top executives, 2010 was a very good year. Enough to make them think that happy days are here again. Then why are the rest of us not feeling so optimistic? It must be Obama's fault.
posted by Steven Zwerling at
4:48 AM
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