Current Events & Hot Topics

Featured Posts
survivorinohio
Over the last 30 years, CEO pay grew 127 times faster than worker pay
November 17, 2012 at 11:21 PM

I know we are talking a lot about hostess but this article states that CEO pay has increased 127 times that of labor.  127 times.

Thats wrong.


Union Claims Hostess Executives Received Raises In Advance Of Bankruptcy (CORRECTION)

Posted: Updated: 11/17/2012 10:01 am EST

CORRECTION: An earlier version of as well as an earlier headline of this post incorrectly stated that Greg Rayburn received a 300 percent raise as CEO of Hostess as the company approached bankruptcy. Rayburn wasn't CEO of Hostess until after the company filed for bankruptcy. The post also incorrectly stated that he was paid a salary of up to $2,550,000 per year. His salary when he joined the company was $100,000 per month, according to a company spokesman.

Hostess could have ensured the Twinkie's survival simply by paying the executives less, one of the unions organizing company workers alleges.

Of course, to hear the company tell it, the maker of Wonder Bread and Twinkies simply can’t survive ongoing worker strikes at its plants. The company claims its hand was forced when it only came to an agreement with one of its two unions after several months in negotiations.

The union says there’s another way the Twinkie-maker could have avoided liquidating and laying off all of its 18,500 workers: by paying the executives less money.

Hostess’ creditors accused the company in April of manipulating executive salaries with the aim of getting around bankruptcy compensation rules, the Wall Street Journal reported at the time. In response, Rayburn announced he would cut his pay and that of other executives to $1 until Dec. 31 or whenever Hostess came out of bankruptcy.

That was after Hostess had already awarded the company's top four executives raises of between 75 and 80 percent, even though the company had already hired restructuring lawyers, according to the WSJ.

The situation isn't specific to Hostess. Over the last 30 years, CEO pay grew 127 times faster than worker pay, according to a July report.

Replies

  • pampire
    by pampire
    November 18, 2012 at 1:57 PM

    This is a large part of what is wrong with corporate America.  Workers are valued less and less and execs are overpaid more and more.  Workers compensation is the first thing sacrificed for the bottom line, when it should be the last thing to go.  Hostess is an exceptional case.  The current mgmt team took over a solvent company and drove it to bankruptcy ten years ago, gave themselves raises and cut worker compensation, then drove the company to bankruptcy again.  At least two of the plants they are closing now were already slated to close.

  • Friday
    by Friday
    November 18, 2012 at 2:45 PM

    Unreal but some on the right insist there's no such thing as class warfare. If this ain't it, I'd like to know what they think this is.

  • stacymomof2
    November 18, 2012 at 4:23 PM

    I am so sick of hearing about "greedy workers."  For some reason many people point to others as the greedy workers, but never seem to include themselves in this group.  We are the workers.Huge companies should not be able to run their companies into the ground, yanking the bonus chain every time they would like a little more cash.  Bonuses bear no relation to actual performance.  The companies go bankrupt, lose money hand over fist, because of the top people's decisions and management.  And who pays?  The workers.  They get laid off, wage freezes, etc, while the bosses give themselves multi-million dollar bonuses.  Look at the damn banks after the bailouts...they failed miserable.  They gambled with capital and lost, took chances and got on the short-sighted gravy train...take take take as much as they could as quickly as possible because they knew that it wouldn't last forever.  So were bonuses cut?  Was base pay cut?  Did they pay ANY price for their actions and mismanagement?  Soon afterward whining about the big bad government trying to pass laws to make this type of gambling illegal.  

    A couple of embarrasing conversations with congress and they were on their way.   Now imagine if this was a regular hourly employee being off in their cash drawer because of money mishandling.  Boom, they would be gone.  Why are these people immune?  Because they already have money and influence.  And that is NOT a free market, capitalist republic.  That is an oligarchy.

  • Sisteract
    November 18, 2012 at 4:28 PM

    TY- it's been a wonderful job. Times have changed greatly in the 32 years that I have been an Nicu nurse. So much advancement and so many children saved and fully functional:)

    Quoting nysa76:

    I just have to say thank you for doing what you do.  I had 2 babies in the NICU.  Most of the nurses there were amazing.

    Quoting Sisteract:

    And we are in a world where Drs and nurses are merely producers for the lining of someone elses pocket not unlike assembly line laborers.


    I told my husband about 4 years ago that I am sure my CEO has no idea what we, the nurses working in the Nicu, do all day long. We could be washing dogs or baking Twinkies for all he knows.



  • stringtheory
    November 18, 2012 at 4:42 PM

    BUMP!

  • stacymomof2
    November 18, 2012 at 4:57 PM

    It must be both heartbreaking and joyful simultaneously.  :)

    Quoting Sisteract:

    TY- it's been a wonderful job. Times have changed greatly in the 32 years that I have been an Nicu nurse. So much advancement and so many children saved and fully functional:)

    Quoting nysa76:

    I just have to say thank you for doing what you do.  I had 2 babies in the NICU.  Most of the nurses there were amazing.

    Quoting Sisteract:

    And we are in a world where Drs and nurses are merely producers for the lining of someone elses pocket not unlike assembly line laborers.


    I told my husband about 4 years ago that I am sure my CEO has no idea what we, the nurses working in the Nicu, do all day long. We could be washing dogs or baking Twinkies for all he knows.




  • Sisteract
    November 18, 2012 at 6:49 PM

    Sad and happy all rolled into one. The really wonderful days far out number the really horrible days. 

    Quoting stacymomof2:

    It must be both heartbreaking and joyful simultaneously.  :)

    Quoting Sisteract:

    TY- it's been a wonderful job. Times have changed greatly in the 32 years that I have been an Nicu nurse. So much advancement and so many children saved and fully functional:)

    Quoting nysa76:

    I just have to say thank you for doing what you do.  I had 2 babies in the NICU.  Most of the nurses there were amazing.

    Quoting Sisteract:

    And we are in a world where Drs and nurses are merely producers for the lining of someone elses pocket not unlike assembly line laborers.


    I told my husband about 4 years ago that I am sure my CEO has no idea what we, the nurses working in the Nicu, do all day long. We could be washing dogs or baking Twinkies for all he knows.





  • turtle68
    November 18, 2012 at 7:49 PM

     

    Quoting illinoismommy83:

    If you want better pay, stop being a laborer. I lack sympathy that factory workers who pull down on a handle for a living don't make very much.

     why does a factory worker have to be paid poorly for a job hard done?  Not saying he should get the equivalent to someone who has a lot more responsibility...but they should be fairly paid.

    Not everyone wants to be responsible or can handle responsibility....who are also happy clocking on at 9 and off at 5.  why must these bread and butter people be punished for being who they are?

    If it wasnt for the factory workers no one up the ladder would have a job.  They support one another.

  • nysa76
    by nysa76
    November 18, 2012 at 8:59 PM


    Quoting turtle68:

     

    Quoting illinoismommy83:

    If you want better pay, stop being a laborer. I lack sympathy that factory workers who pull down on a handle for a living don't make very much.

     why does a factory worker have to be paid poorly for a job hard done?  Not saying he should get the equivalent to someone who has a lot more responsibility...but they should be fairly paid.

    Not everyone wants to be responsible or can handle responsibility....who are also happy clocking on at 9 and off at 5.  why must these bread and butter people be punished for being who they are?

    If it wasnt for the factory workers no one up the ladder would have a job.  They support one another.

    I work factory.  I bust my tail from 5:30am-3pm five days a week.  There is a hiring freeze.  I am a temp.  There are temps who have been there for 3 years.  I have no benefits.  No holiday pay.  No accruing vacation.  No sick time.  No insurance.  I get paid $5/hr less than the lowest paid company employee.  I get paid nearly 10/hr less than the company employees who do the same job as I do.  Who run the same number of lines.  And my job will be much easier to lose if I don't make quota.

    Without the factory grunt, there are no ceo's.

  • turtle68
    November 19, 2012 at 1:04 AM

     

    Quoting nysa76:


    Quoting turtle68:

     

    Quoting illinoismommy83:

    If you want better pay, stop being a laborer. I lack sympathy that factory workers who pull down on a handle for a living don't make very much.

     why does a factory worker have to be paid poorly for a job hard done?  Not saying he should get the equivalent to someone who has a lot more responsibility...but they should be fairly paid.

    Not everyone wants to be responsible or can handle responsibility....who are also happy clocking on at 9 and off at 5.  why must these bread and butter people be punished for being who they are?

    If it wasnt for the factory workers no one up the ladder would have a job.  They support one another.

    I work factory.  I bust my tail from 5:30am-3pm five days a week.  There is a hiring freeze.  I am a temp.  There are temps who have been there for 3 years.  I have no benefits.  No holiday pay.  No accruing vacation.  No sick time.  No insurance.  I get paid $5/hr less than the lowest paid company employee.  I get paid nearly 10/hr less than the company employees who do the same job as I do.  Who run the same number of lines.  And my job will be much easier to lose if I don't make quota.

    Without the factory grunt, there are no ceo's.

     see this is why I think America is backward with the employment industry and wage awards.  Here it is the EXACT opposite....if you are casual the government made it hard on employers to throw full time workers away in exchange for casual / temp workers.  They made the casual rate minimum about a third higher than a full time employee.  So if you are fulltime and earn 17hr...then a casual doing the same job would be paid about 23hr....this compensates for no vacation pay or sick pay as well as deters an employer from hiring casuals only...it works out dearer for them in the long run.

Current Events & Hot Topics

Active Posts in All Groups
More Active Posts
Featured Posts in All Groups
More Featured Posts
close Join now to connect to
other members!
Connect with Facebook or Sign Up Using Email

Already Joined? LOG IN