The compensation question

February 20, 2009 at 1:22 pm Leave a comment

I don’t know about you, but it bothers me that President Obama makes $300,000/year (or thereabouts) but most CEO’s make millions and millions. Does this discrepancy make sense?  I am not advocating we raise the President’s salary. Actually, I think we should do the opposite and reduce CEO/COO/CIO pay; and NOT just for those organizations getting government aid per Business Week.

I absolutely believe that c-suite folks deserve to be paid according to the value they bring their companies, but realistically, how much value are they really bringing? The CEO to employee pay ratio has been escalating out of control for quite some time now. Is it really necessary for a CEO to make 600X the amount of the average employee?  Costco’s CEO Sinegal believes “If the CEO of a company is paid 10 to 12 times the highest hourly rate, that is probably pretty fair.”  Great concept!  GE’s CEO Immelt has waived his bonus for 2008, worth over 11 million, because of the economy and for the health of his company.  Hmm, any other CEO’s listening out there?

Apparently our own government needs to learn a lesson as the Postmaster General received a $70,000 raise last year and earned himself a $135,000 bonus. Wait, isn’t this the same person who told us recently that they may cut mail delivery to weekdays only to save money while also raising stamp prices again? That doesn’t sound like a flourishing business to me but we can thank Congress for his lavish salary as they approved it.

Interesting, the average employee is hearing that their bonuses are being frozen as are their wages.   The pay inequity rages on.  However, change is on the horizon.  As more hear about these issues, the more we can all speak up and create the change that is needed.  I hope you use your greatest asset, YOU, to bring about the kind of changes that are needed for all of us to live successfully!

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Entry filed under: Miscellania, Relationships, thoughts, workplace. Tags: , , , , , , , , , , , , , , , , .

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