Issue of the Week

CEO Pay

    There has been much talk about the dramatic increase in Chief Executive Officer compensation levels over the past 10 years. In some cases, CEO pay is over 200 times the average worker's pay. A front page article appeared in the New York Times last fall which indicated that some of the CEO compensation is being taken in the form of deferred compensation and may not have even been counted in the calculation of pay levels. Workers who have lost jobs or had pay levels or benefits reduced in some form are really upset. Congress has gotten involved. Tax legislation was proposed which would curb "excess" compensation by making CEO pay non-deductible over a certain amount.

    It is obvious that the people who write and talk about this issue think that something is very wrong here. The purpose of raising it as the issue of the week is to get some consensus on what people think the ethical issue really is. Is it a simple matter of fairness between senior management, employees and shareholders?

    Or is there a societal issue as well? Critics seem to see this as evidence of what political commentator Michael Lind calls Brazilianization, that is, a "fissionization" or separation taking place in U.S society along class lines.

    What is your view? Send us your comments.


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