Tuesday, October 04, 2011

I MISSED THE BOTTOM LINE ON THIS GRAPH

The WaPo has a nice article on how the MOTU have rigged the CEO compensation game and included this graph:


On the very bottom of the graph on the right, the average annual pay of employees is given and it's barely above the X-axis. The article explains what we are seeing:
Since the 1970s, median pay for executives at the nation’s largest companies has more than quadrupled, even after adjusting for inflation, according to researchers. Over the same period, pay for a typical non-supervisory worker has dropped more than 10 percent, according to Bureau of Labor statistics.
In addition, the old practice of filling the board with buddies is still alive at some companies:
At Amgen, for example, four of the six members of the board compensation committee had personal or business connections to Sharer before joining the board. In fact, he nominated at least two of the six to the board, according to a company source and reports.

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