business.time.com | What Should Be Done About Growing Inequality?


 

business.time.com

America is becoming more unequal economically, and most people find that disturbing. Indeed, the trend toward greater inequality has been one of the consistent themes of the election campaign. Some believe that inequality is necessary to reward hard work, achievement and entrepreneurship but think that the current level is too extreme. Others blame unfair tax policies and see the extent of today’s inequality as a sign that the government has abandoned the goal of equal opportunity.

In fact, whenever inequality increases in a society, there are both good reasons for the trend — that is, reasons we should not discourage — as well as bad ones. To best address the genuine problems caused by inequality today, it’s essential to identify the bad reasons and focus on reducing those.

First, though, let’s be clear: there’s no doubt that the very richest in the U.S. have been getting richer. One of the often quoted indicators, albeit a simplistic one, is the share of pretax income going to the top 1% of the population. These data suggest that the U.S. was most equal right before the oil crisis hit in the early 1970s, and that it has since returned to levels of inequality not seen since the Great Depression.

More sophisticated indicators, like the Gini coefficient, also show the U.S. becoming notably more unequal. As a generality, countries such as Brazil and South Africa rate high on this scale, while most European countries have lower levels of inequality. The U.S. is in between – at almost the same level as China. Prior to 1980, the U.S. was much closer to the European level, and some countries — such as France and Italy — actually had higher levels of inequality at that time.

Leer más “business.time.com | What Should Be Done About Growing Inequality?”

Anuncios

America’s Highest-Paid CEOs

The extraordinary pay of American CEOs may be old news, but the latest numbers show that the discrepancy between company performance, the U.S. economy, and the paychecks of corporate chieftains continues to expand.

Median CEO pay in 2010 increased 27 percent in Russell 3000 companies, while the index itself rose only 17 percent, according to the GMI 2011 CEO Pay Survey, a poll of chief-executive compensation across more than 2,600 companies. The median compensation for CEOs of S&P 500 companies was $8.9 million—a 45 percent increase from the median compensation in 2009.


 

http://www.thedailybeast.com

With income inequality on the rise and an uncertain economic forecast, CEO compensation continues to outpace the stock market. The Daily Beast lists the year’s top earners.


The extraordinary pay of American CEOs may be old news, but the latest numbers show that the discrepancy between company performance, the U.S. economy, and the paychecks of corporate chieftains continues to expand.

Median CEO pay in 2010 increased 27 percent in Russell 3000 companies, while the index itself rose only 17 percent, according to the GMI 2011 CEO Pay Survey, a poll of chief-executive compensation across more than 2,600 companies. The median compensation for CEOs of S&P 500 companies was $8.9 million—a 45 percent increase from the median compensation in 2009.

ceos-with-highest-salaries-gal-tease-2

John H. Hammergren of McKesson Corp., the highest-earning CEO in 2010, pulled in more than $145 million in total compensation. He’s one of three health-care CEOs who ranked among the 10 highest-earning executives, despite the lackluster state of the health-care industry. Leer más “America’s Highest-Paid CEOs”