Thursday, December 8, 2011

Executive Salaries.

     Much heat has been generated on the subject of the huge salaries received by the CEOs of major corporations. One popular method of illustrating the obscenity is by showing the CEO's salary as a multiple of a typical production worker's salary. It is not unusual for the CEO's salary to be equal to 300, 400 or even 600 times the hourly workers income.
     The following table is a listing of the 2010 salary and other income paid to the heads of several of our largest corporations.* Much of the “other“ income is not taxed until it is actually received. Because much of it consists of stock options, it may be considerably more valuable at that time then as shown here; options will be taxed at a maximum rate of 15%.
     Also shown is the executive's total earnings per minute, based on 40 hours per week for 52 weeks.

   Company            Total          Salary         Other        Per Minute
General Electric  21,428,765  7,300,000  14,128,765     171.20
Halliburton         14,893,916  1,358,500  13,535,416     119.34
IBM                   31,718,608  1,800,000  29,918,608     254.16
Gen. Dynamics   13,751,115  4,500,000    9,251,115     110.19
Ford                  26,520,515  4,550,000   21,970,515     212.50

     During the two minutes you have spent reading this article, the CEO of IBM would have earned $508.32. The earnings of a median worker would have been $.54.
     Not too bad.

* Earnings reported by Executive Paywatch.
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My books, “There Are Only Seven Jokes” and “The Spirit Runs Through It” are available in paperback, or at the Kindle Store.

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