Posts Tagged ‘pay’

CEOs

According to the AFL-CIO Executive Paywatch project, in 2016, CEOs of S&P 500 Index companies received, on average, $13.1 million in total compensation. In contrast, production and nonsupervisory workers earned only $37,632, on average, in 2016—a CEO-to-worker pay ratio of 347 to 1.

Above is a list of the top twenty CEOs, ranging from Kenneth Lowe of Scripps Networks Interactive at over $28 million to Sundar Pichai of Alphabet, who managed to capture over $100 million in executive compensation.

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Federal government jobs are a pretty good deal, especially for workers without a professional degree or doctorate.

According to a recent study by the Congressional Budget Office (pdf), wages for federal workers with a high-school diploma or less are 34-percent higher than comparable workers in the private sector. And, when you include benefits (especially defined-benefit retirement plans), their total compensation is 53-percent higher. For federal workers with a bachelor’s degree, the numbers are 5 percent (for wages) and 21 percent (for total compensation). Only federal workers with a professional degree or doctorate are paid less than their private-sector counterparts (by 24 percent), resulting in a total compensation that is also less (by 18 percent).

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The problem is, it’s not easy to get those jobs. In contrast to what many people think (my students included), federal employment (excluding the U.S. Postal Service) makes up only 1.4 percent of civilian employment in the United States—just a bit higher than before the Second Great Depression (when it stood at 1.3 percent) but far below what it was in the late 1960s (when it was 2.8 percent).

So, to all those who complain about the growth of the “government bureaucracy,” they should be reminded of the small percentage of total employment represented by federal workers—and the fact that most federal employees (60 percent) work in just three departments in the executive branch: Defense, Veterans Affairs, and Homeland Security.

And for those who argue that federal employees are compensated better than their private-sector counterparts, there’s an easy solution: raise the pay of private-sector workers and improve their benefits!

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Apparently, it’s big news that California Governor Jerry Brown [ht: sm] just signed a bill that, for the first time, means farmworkers in that state will be entitled to the same overtime pay as most other hourly workers

But this is the United States. So, the law only takes effect beginning in 2019. And it will lower the current 10-hour-day threshold for overtime by half an hour each year until it reaches the standard eight-hour day by 2022. (It will also phase in a 40-hour standard workweek for the first time.) And the governor will be able to suspend any part of the process for a year depending on economic conditions.

But, still, it’s a vast improvement over what exists now—in California and across the United States.

In California, employers currently must pay time-and-a half to farmworkers after 10 hours in a day or 60 hours in a week. That only happened beginning in 1976, since before that (dating back to 1941), the California Legislature exempted farmworkers from earning any overtime pay.

And U.S. federal law is even worse. The federal Fair Labor Standards Act of 1938, which established minimum wage and overtime standards, excluded all agricultural workers, the majority of whom at the time were African American.

Even now, the amended Fair Labor Standards Act, which states that all workers (including farmworkers, except those employed on “small farms”) need to paid at least the federal minimum wage, still exempts farmworkers from the overtime pay requirements that apply to all other hourly workers.

Ah, what a country!

IN-Russell IN-S&P

According to the AFL-CIO Corporate Pay Watch, in the state of Indiana, the 2014 CEO to average worker’s pay ratio was 101:1 (for corporations in the Russell 3000) and 306:1 (for corporations in the S&P 500).

In the nation as a whole, the ratio (for corporations in the S&P 500) was 373:1, which surpassed the ratio for 2013 (331:1)—both of which were much, much higher than the ratio in 1980 (42:1).

The average CEO compensation of Russell 3000 companies in 2014 was $5,504,432. As it turns out, the industry with the highest CEO pay was Tobacco Products ($13,061,671), followed by Railroad Transportation ($12,526,083), Petroleum Refining ($12,502,981), Communications ($10,769,054), and Hotels ($10,058,029).

As for the Security and Commodity Brokers, Dealers, Exchanges, and Services industry (where financial institutions like Goldman Sachs are located), the average CEO pay was “only” $8,102,970—ranging from $105,295 (for Joe Mansueto of Morningstar) to $88,518,411 (for Mario J. Gabelli of Gamco Investors, Inc.).

Clearly, a large portion of the surplus workers create ends up in the pockets (and portfolios) of the CEOs of the nation’s largest corporations.

Student-debt

Special mention

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Special mention

14yDhx.AuSt.79 Clay Bennett editorial cartoon

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While a special compensation committee of the University of Kentucky Board of Trustees met Tuesday to discuss whether or not to increase President Eli Capilouto’s salary, which is currently $615,825, the Lexington Herald-Leader discovered that the UK president’s pay increased an average of 9.7 percent each year over the last decade, eclipsing the average annual tuition increase of 7.3 percent and far outpacing the average faculty and staff pay increase of 2.1 percent.

In 2012, analysts at the financial management firm Bain & Company wrote in a white paper for its clients about administrative spending in higher education,

Boards of trustees and presidents need to put their collective foot down on the growth of support and administrative costs. Those costs have grown faster than the cost of instruction across most campuses. In no other industry would overhead costs be allowed to grow at this rate—executives would lose their jobs.

As colleges and universities look to areas where they can make cuts and achieve efficiencies, they should start farthest from the core of teaching and research. Cut from the outside in, and build from the inside out.

The problem, of course, is that the presidents of colleges and universities are the ones benefiting from the increase in administrative spending.