Our favorite corporate fraudulent writer Gretchen Morgansen had a recent look into how companies compensate their executive heads in recent New York Times article again showing her determination to spread the news of corporate wealth extraction for its leaders. Gretchen is poignant on how ambiguous the corporate world gives in a description on how much their chief executives get paid. Companies purposely make it difficult for shareholders to realize how much money the CEOs are getting paid and whether their value really brings anything to the table. She found it amazing how companies refuse to make simple informative presentations basing value in the relative generous millions given to these few men every year by corporate world and the board members, often consisting for former bigwig executives within the same industry.
The outrageous pay for executives sometime is based on tock prices that can still increase as the managers run a company into the ground and into oblivion and bankruptcy. Gretchen detailed research showing that almost half of companies severely over-paid their chief executives based on performance in a five year period and few stock holders even realize that the reason their dividends appear so low is the amount wasted on the compensating those few at the top to live a more nobility lifestyle. many of these chief executives and the backers for high pay refuse to acknowledge the importance of return on capital as the best gauge whether a CEO is doing a successful job as leader of a corporate entity. 
The amount waste by companies wining and dining their leadership into a lifestyle and pay three hundred times greater than the average employee at the company is the number one reason why economic growth rates have stagnated as a few vulture fund, banksters, and executives of business have found a clever way to manipulate wealth into their hands and their favorite cronies through this misrepresentation of value one individual brings on board. rich people have found a way to tap as much as they could form a company and its workers,cuting corners and wages, and then using these savings to buy up more assets like sports teams,leverage government, and push for private development deals and so forth.
No comments:
Post a Comment