According to a just-released memorandum by the House' Committee on Oversight and Government Reform, ignored by mainstream media but put into the spotlight by our friends of dirt diggers digest, "executive pay is rising rapidly and dramatically" in the USA. The report is worth quoting at length: "According to Forbes magazine, CEOs of the largest 500 U.S. companies received an average of $15.2 million each in 2006, a collective raise of 38% over 2005. Many experts believe there is a growing disconnect between CEO pay and performance, as increases in executive pay cannot be explained by factors such as changes in firm size or performance. In a recent survey of more than 1,000 directors at large U.S. companies, 67% said that they believe boards are having difficulty controlling the size of CEO pay packages.
The large increases in executive compensation also have widened the gulf between CEO pay and that of the average worker. In 1980, CEOs in the United States were paid 40 times the average-worker. In 2006,the average Fortune 250 CEO was paid over 600 times the average worker. While CEO pay has soared, employees at the bottom of the pay scale have seen their real wages decline by more than 10%o over the past decade."
The large increases in executive compensation also have widened the gulf between CEO pay and that of the average worker. In 1980, CEOs in the United States were paid 40 times the average-worker. In 2006,the average Fortune 250 CEO was paid over 600 times the average worker. While CEO pay has soared, employees at the bottom of the pay scale have seen their real wages decline by more than 10%o over the past decade."
