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

  • SunshneDaydream
    November 18, 2012 at 9:31 AM

    Oh yeah, okay...let me just snap my fingers, and pull this degree out of my ass, and go apply for a corporate position somewhere.  It's not as easy as just "stop being a laborer".  Getting a degree requires time and money that some people just don't have.  Get real.

    And what would happen if all those factory workers stopped being factory workers?  Somebody has to pull that lever, and whoever does it is going to be frustrated that they can barely feed their families while their company's CEO just bought a second jet or third vacation home in the Bahamas.

    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.

     

  • Iconoclast
    November 18, 2012 at 9:31 AM
    Yea, stop being a laborer, silly factory workers. I mean, yeah, that handle puller is an intergral part of getting the product out quickly, efficiently, and most times to a certain level of quality but come on. who can have any sympathy for the foundation of a company, right? They need to quit and take some of those plentiful CEO jobs out there, it's were the big bucks are with no obvious salary cap (obviously). Damn handle pullers. And while on the subject poor people need to just stop being poor.


    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.


  • rfurlongg
    November 18, 2012 at 9:39 AM
    Laborers and CEO should not have equal pay, no one is arguing that. No one us saying laborers should make million dollars a year. The issue is the vast disparity in pay increase for one group and not the other. If laborers and CEO equally received a 127% pay raise in the past 30yrs CEO would still be making substantially more than laborers but the disparity would not be as great.

    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.

  • survivorinohio
    November 18, 2012 at 9:39 AM


    Quoting SuperChicken:

    Does that even include the bonuses they "earn?"

    I think thats its base salary.

  • meriana
    by meriana
    November 18, 2012 at 9:45 AM

     

    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.


    A lot of those factory workers (laborers) build things like hmmm...the airplanes we see flying all over the world, transporting people to their various destinations safely every day. Yet, if the Union should strike people are down on them for it, even though it's usually a case of the Union trying to keep the company from reducing worker wages and/or benefits or to keep the company from out-sourcing jobs. Think about it, who would you rather have building those airplanes...a fairly compensated, skilled worker who is able to support his family or one who  struggles daily to provide because his/her wages have been cut and the cost of living has risen? If it's the former, you can thank the Union.

  • Aslen
    by Aslen
    November 18, 2012 at 9:47 AM

    Anyone else notice the Hostess CEO gave himself a 300% raise while GOING THROUGH BANKRUPTCY???? THIS is why Capitalism does NOT work. Capitalism sucks!

  • SuperChicken
    November 18, 2012 at 10:16 AM


    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.

    I doubt they care much for your sympathies.   What they want is to be treated as the valuable labor that they are, as without them nothing gets made as Hostess just found out, rather than as serfs to be grateful for the crumbs tossed to them by men on high.   Empty factories make very little.

  • SuperChicken
    November 18, 2012 at 10:17 AM


    Quoting survivorinohio:


    Quoting SuperChicken:

    Does that even include the bonuses they "earn?"

    I think thats its base salary.

    So 127 is a conservative estimate.   And we wonder why our economy is flailing.

  • Sisteract
    November 18, 2012 at 11:01 AM

    Our nurse manager just shared an interesting story.

    Our facility just hired a financial guru to find waste. This man was in a meeting with a group of sub-speciality physicians and some nursing dept heads, when one of the physicians went off on this guru re financial compensation at the top, specifically calling out the CEO's compensation. My manager said that she had never seen either man so angry...evidently they were really going at it.

    Damn those lazy physicians...they need to get better skills, more educated and work harder.

    Greed contributes to the fall of great nations.

  • survivorinohio
    November 18, 2012 at 11:06 AM


    Quoting Sisteract:

    Our nurse manager just shared an interesting story.

    Our facility just hired a financial guru to find waste. This man was in a meeting with a group of sub-speciality physicians and some nursing dept heads, when one of the physicians went off on this guru re financial compensation at the top, specifically calling out the CEO's compensation. My manager said that she had never seen either man so angry...evidently they were really going at it.

    Damn those lazy physicians...they need to get better skills, more educated and work harder.

    Greed contributes to the fall of great nations.

    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

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