By Samantha Masunaga
June 22, 2015
Chief executives of the country’s largest firms made 303 times more than a “typical” worker in 2014, according to a report from the Economic Policy Institute, a left-leaning think tank.
That number seems high, but is lower than it was in 2000, when CEO compensation peaked at 376 times that of the average worker.
The report found that average compensation in 2014 for CEOs of the largest firms was $16.3 million, up 3.9% from a year before and an increase of 54.3% since 2009 when the economy began to recover.
Broken down more simply, the report says CEOs earn three times more than they did 20 years ago.
The report said the increase in CEO compensation reflects “improving market conditions” and a “general rise in profitability,” which also boosted corporate stock prices.
CEO compensation often increases when the stock market rises and firms’ stock prices increase with it, the report said. In fact, most CEO pay packages allow compensation to increase whenever the firm’s stock value rises, according to the report.
“It seems evident that individual CEOs are not responsible for this broad improvement in profits in the past few years, but they clearly are benefiting from it,” the report said.
To read entire story, click here.
The main reason this is happening is that using the APEC designed tax code; Every dollar a corporation pays to a CEO in the form of a “bonus” the corporation get 2 dollars back in tax deductions.
That’s why you hear more and more CEO’s claiming they only work for 1 dollar per year; Reporters never seem to know to ask, How much was your bonus?)
To make things worse; the same tax code allows the CEO’s to pay as little as 8% in taxes while the rest of us pay 30%-
Think Koch Brother funded Tea Party rallies with 30% tax paying citizen screaming “No new taxes! No new taxes” – They aren’t talking about the bottom 99%…. they just don’t know that.
Oh, and if you think bonuses are tied to performance? Think again. Think Yahoo… Marissa Mayer has all but killed it off and still received 1.1 million in a bonus (for 5 months of work- Corporate tax deduction)
Here: This is for all you “No More Taxes Idiots” –
Note the refund…. This means not only did these companies pay ZERO taxes, the government wrote them a check (that you and I have to cover with our 30% taxes) and they simply used it as profit.
1. Boeing
Boeing pre-tax income: $5.95 billion
CEO James McNerney total pay: $23.3 million
U.S. corporate income tax total: refund of$82 million
2. Ford Motors
Ford pre-tax income: $6.52 billion
CEO Alan Mulally total pay: $23.2 million
U.S. corporate income tax total: refund of$19 million
3. Chevron
Chevron pre-tax income: $4.67 billion
CEO John Watson total pay: $20.2 million
U.S. corporate income tax total: $15 million
4. Citigroup
Citigroup pre-tax income: $6.4 billion
CEO Michael Corbat total pay: $17.6 million
U.S. corporate income tax total: refund of$260 million
5. Verizon
Verizon pre-tax income: $28.83 billion
CEO Lowell McAdam total pay: $15.8 million
U.S. corporate income tax total: refund of$197 million
6. JPMorgan Chase
JPMorgan pre-tax income: $17.23 billion
CEO Jamie Dimon total pay: $11.8 million
U.S. corporate income tax total: refund of$1.3 billion
7. General Motors
GM pre-tax income: $4.88 billion
CEO Daniel Ackerson total pay: $9.1 million
U.S. corporate income tax total: refund of$34 million
You’re right. I’m for one tired of seeing these very profitable companies revive tax dollars free and clear. It is very sureal to see the tea baggers fighting against the reversal of this welfare program all the while paying high taxes themselves. They are very stupid people.
Please don’t mangle the English language then call people stupid. That’s circular defeatism.
Anyway- most of those people at the rallies worked extremely hard all of their lives and are starting to feel everything they were promised and worked towards being ripped away from them.
They had no idea that the rallies were completely funded by the Koch Brothers to direct their ager away from themselves and towards a wrong direction.
They got suckered. Most of them realize it now. (The expensive stages, diamond visions, and sound systems should have been a clue. (Being that the Tea Party Rallies were “Grass Roots”-
The problem now is they way these people are handling the realization that they just gave America away to the .01%-
It seems most of them are digging in their heels and insisting what is in front of their face simply can not happen in the Country these people had built up.
It’s sad as Hell.
A very big light on the truth is Kansas. The Koch Brothers are based out of Kansas. They put up millions of dollars getting Sam Brownback elected and a plethora of assembly.
Low and behold; corporate taxes were brought down to zero. The state soon ran out of money and went broke. Instead of asking corporations to pay for all of the benefits and services the state provides them…. Sam Brownback decided to close the public schools and direct the saved money too…. you guessed it; corporations (Koch Brothers) in the form of tax refunds and zero taxes.
This situation is EASILY verified and read about- it’s amazing, actually.
I fear they are going to get away with the same tricks using Scott Walker. (They’ve teamed up with Sheldon Adelson pledging 9 billion (I think) to get Scott Walker elected.
You have to ask yourself- If two of the richest organizations in the World are blowing 9 billion dollars to get a man elected to the office of the President…. who will that man be loyal too? The people that voted him into office or the people who got him into office.
Sucks huh?
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