CEO pay

d-ray657 · #1 08-31-2011, 08:59 PM

The following story appeared in the Kansas City Star. So this is why we need to lighten up on corporate taxes.

Corporations richly reward CEOs for tax avoidance, group reports
By DIANE STAFFORD
The Kansas City Star

Twenty-five of the 100 highest-paid CEOs in the United States last year took home more pay than their corporations paid in federal corporate income taxes, according to a report released today.

The annual report on executive compensation, published by the Institute for Policy Studies, said the average CEO compensation at Fortune 500 companies rose nearly 28 percent, and the ratio of CEO pay to that of the average worker increased.

The research organization, which advocates for social justice, said the 25 “tax-dodging” CEOs averaged $16.7 million in pay last year. The report said most of their companies had substantial profits yet collected an average of $413 million each in refunds from the Internal Revenue Service.

Researchers said 18 of the 25 firms had subsidiaries in offshore tax havens, for a combined total of 556 tax haven subsidiaries.

“Of the 25 companies that paid their CEO more than Uncle Sam, 20 also spent more on lobbying lawmakers than they paid in corporate taxes,” according to the institute. “Eighteen gave more to the political campaigns of their favorite candidates than they paid to the IRS in taxes.”

Each year the institute also measures the pay gap between top-paid CEOs and their workforces. Looking at CEO compensation for the S&P 500, the average pay was $10.8 million in 2010, a 27.8 percent increase over 2009, the report said. Based on that comparison, “the gap between CEO and average U.S. worker pay rose from 263-to-1 in 2009 to 325-to-1 last year,” the institute reported.

Regards,

D-Ray

finnbow · #2 08-31-2011, 09:04 PM

I don't blame the companies or their CEO's. I blame the tax code.

djv8ga · #3 08-31-2011, 09:07 PM

Now that is an issue I wish the American voter would hammer on.
Cool post.

Bigerik · #4 08-31-2011, 09:14 PM

Really shows that increases in corporate taxes being a huge negative is total BS. They certainly have it to spend in what they choose. They just choose not to support the country they make their profits in.

djv8ga · #5 08-31-2011, 09:19 PM

I don't see taxes as the issue.
It's the top taking all the money from the other workers. It lowers the standard of living, shrinks the middle class, and HURTS revenue for public service.
I think this is something that could be fixed. The problem is both sides are getting lobbied so hard...

d-ray657 · #6 08-31-2011, 09:51 PM

Quote:

Originally Posted by djv8ga

I don't see taxes as the issue.
It's the top taking all the money from the other workers. It lowers the standard of living, shrinks the middle class, and HURTS revenue for public service.
I think this is something that could be fixed. The problem is both sides are getting lobbied so hard...

Yeah, did you notice that 20 of the 25 corporations that paid more to their CEO than they did in taxes also spent more on lobbying than they spent on taxes.

Does anyone know if lobbying expenses are tax deductible to a business? It seem like, if individual political contributions are not tax deductible, then lobbying expenses shouldn't be either.

Regards,

D-Ray

d-ray657 · #7 08-31-2011, 09:47 PM

One thing I would do is provide that salaries over a particular level - say the salary of the POTUS - are not deductible as expenses to the corporation - and require that the executives pay social security and medicare taxes, and that the companies match them. At least that way the working people would see some benefit from the irrationally high salaries.

Regards,

D-Ray

Oerets · #8 08-31-2011, 10:45 PM

CEO's and upper management of Corporations see no problem with their compensation. But let the actual people who do the work get paid a living wage or decent benefits. Now that is where they draw the line, don't want to make less of a profit.

If there was any truth in the rich create jobs then it would be happening at these corporations right? Or are all the jobs overseas is that why we can't see them?

Barney

Bigerik · #9 08-31-2011, 11:02 PM

Quote:

Originally Posted by Oerets

CEO's and upper management of Corporations see no problem with their compensation. But let the actual people who do the work get paid a living wage or decent benefits. Now that is where they draw the line, don't want to make less of a profit.

If there was any truth in the rich create jobs then it would be happening at these corporations right? Or are all the jobs overseas is that why we can't see them?

Barney

Yup, the rich are creating plenty of jobs. In China, India, Korea, etc.

Again, these guys think in quarters, or at most, to their next bonus. What happens to the workers, the company or the country is a non-issue.

BlueStreak · #10 09-01-2011, 12:53 AM

Quote:

Originally Posted by Oerets

CEO's and upper management of Corporations see no problem with their compensation. But let the actual people who do the work get paid a living wage or decent benefits. Now that is where they draw the line, don't want to make less of a profit.

If there was any truth in the rich create jobs then it would be happening at these corporations right? Or are all the jobs overseas is that why we can't see them?

Barney

I think you might be on to something.

Dave