Notwithstanding the collapse of financial markets attributable in large measure to rapacious Wall Street executives less than three years ago, in 2010, the nation’s largest companies’ executives received an average of $11.4 million in compensation–343 times more than a typical American worker.
“The disparity between CEO and workers’ pay has continued to grow to levels that are simply stunning,” said Richard Trumpka, AFL-CIO president.
In an effort to expose CEO pay, the AFL-CIO examined chief executive salaries at 299 firms traded on the S&P 500. The analysis revealed their compensation increased by 23 percent in 2010, compared to 2009. Combined their total CEO pay of $3.4 billion could support 102,325 median workers’ jobs.
According to the AFL-CIO, CEOs of the largest American companies received more in compensation than ever in U.S. history. While they claimed that they are deserving of this money because of increasing stock prices, the truth is, on December 31, 2010, the S&P 500 Index closed 19 percent below its high on March 24, 2000.
Althugh CEO pay on Wall Street and major corporations remain out of the control, the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed by President Obama last year, allows shareholders to have some say on CEO pay.
The AFL-CIO believes that while these shareholder votes are not binding, they may encourage boards of directors to reform their companies’ executive compensation packages.
Don’t hold your breath for that to happen.
