Posts Tagged ‘pay’


Special mention

14yDhx.AuSt.79 Clay Bennett editorial cartoon


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.

Chart of the day

Posted: 24 September 2014 in Uncategorized
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According to a new study by Carl Van Horn, Cliff Zukin, and Allison Kopicki [pdf], for the John J. Heldrich Center for Workforce Development,

nearly 30 million people — say they were laid off from a job in the past five years. Nearly 4 in 10 of these laid-off workers say they searched for a job for more than seven months before finding another one; one in five workers laid off during the past five years never found another job (see Figure 1). Of those who found another job, one in four say it was a temporary position.

Moreover, laid-off workers who found another job seldom improved their financial situation: two-thirds say their new jobs either paid less than their previous one (46 percent) or paid the same (21 percent). It’s no surprise then that nearly half of the reemployed workers say their new job was a step down for them compared to what they were doing five years ago. Just a quarter say their new job was a step up and only a third say they are receiving higher pay.

Chart of the day

Posted: 21 August 2014 in Uncategorized
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student loans-per recipient

As evidence of the “coming student loan apocalypse,” Shahien Nasiripour provides data about the astounding growth in student loan debt. As you can see in the chart above, average federal student loan debt per borrower has risen more than 50 percent between 2007 (when it was $18,233) and 2014 (now $27,481).*


That’s what students (and their families owe). By way of comparison, in terms of ability to pay, what’s happened to workers’ pay in the United States during that same period? Well, it’s only gone up (in nominal, not real, terms) 16 percent (from $702.40 in July 2007 to $843.50 July 2014).

In other words, students and their families’ ability to service their student loans is falling further and further behind the amount of debt their forced to take on in order to pay for their education.

Something has to give. . .


*Total federal student loans have grown even more: by an extraordinary 112.5 percent over that same period.

student loans-total


Neil Irwin, Claire Cain Miller, and Margot Sanger-Katz have assembled a series of charts documenting America’s enduring—and, in many cases, growing—racial divide. I have reproduced some of them below.

One of the key pieces of information they don’t include has to do with incarceration rates. As you can see from the chart above (from the Pew Research Center [pdf]), African American men were 5 times more likely to be incarcerated in 1960 than white men (relative to the size of each demographic group)—a rate that grew to over 16.5 in 2010.

Here are the other charts:



higher education








Special mention

140408-equal-pay www.usnews



Jamie Dimon, JPMorgan’s chief executive, has been awarded total pay of $20 million for 2013, a 74-percent increase over the amount he received for 2012, according to a regulatory filing released on Friday.

The bank’s board of directors approved the increase even though a steady stream of scandals and a raft of regulatory actions have in recent months cast doubt on Mr. Dimon’s leadership at the nation’s largest bank. The big raise for 2013 came in the face of opposition from a vocal minority of board members, who wanted Mr. Dimon’s compensation for 2013 to be roughly equal to his pay for 2012, which totaled $11.5 million. . .

Mr. Dimon’s 2013 pay was close to the $23.1 million he got for 2011, when he was the highest-paid chief executive at a large bank. Over the last five years, Mr. Dimon has been paid nearly $70 million.

Chart of the day

Posted: 16 December 2013 in Uncategorized
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According to the New York Times,

Forty-two presidents of private colleges were paid more than a million dollars in 2011, up from 36 for the previous two years.

And as Jonah Newman reports, it’s the same justification we’ve heard about the escalating share of the surplus received by business CEOs, bankers, and others in the top 1 percent:

When defending compensation of $1-million and more for college presidents, trustees and university officials often repeat a simple refrain: Attracting the best talent costs money.


Well, the results are in and, to paraphrase Chico Escuela, the current recovery been berry, berry good to corporate CEOs in the United States.

According to GMI Ratings’ 2013 CEO Pay Survey, CEO compensation has set a new record: for the first time ever, the ten highest-paid chief executives in the United States all received more than $100 million in compensation and two of them took home billion-dollar paychecks.


The report also shows that the median increase in total realized compensation for S&P 500 CEOs was 19.65 percent (an increase even over last year, when they benefited from a 13.78-percent increase at the median).

While salary, bonuses, and perks remained relatively flat in the S&P 500, it was the profits made from the exercise of stock options and the vesting of restricted stock that represented the bulk of pay in the index. Examples include Michael D. White, third-year CEO of DIRECTV, who saw a realized compensation increase from $5.7 million in 2011 to $50.8 million in 2012. The increase occurred when Mr. White exercised more than one million stock options (worth $18 million) and saw more than a half million units of restricted stock vest (worth $26.8 million), all equity granted in a CEO Golden Hello. The company’s stock price has climbed about 80% over the past three years.

The average increase for the same group was 55.18 percent.

To make the appropriate comparison, consider the increase in hourly pay for workers (production and nonsupervisory) between December 2011 and December 2012. It amounted to 1.8 percent. The growing gap between those at the top and the rest meant that, in 2012, the CEO-to-worker-pay ratio in the United States rose to 354 to 1.*

Clearly, the current recovery has been very good for a tiny minority of executives, who are managing to leave everyone else behind.


*Again, for purposes of comparison, that ratio was 42:1 in 1982 and 281:1 just a decade ago. In terms of other countries, it was 89:1 in Sweden, 93:1 in Australia, and 147:1 in Germany in 2012.


Special mention

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