CEO Income on the Rise

Trial lawyers are ruining our economy.  Businesses cannot make it in this legal quagmire we are in.  How can businesses survive with all of the frivolous lawsuits?  We need caps on damages so businesses won’t go to other states.

This is some of the rhetoric we hear from the U.S. Chamber of Commerce and its members.  Well, we call bull on that one!  It was reported by the Associated Press in the Birmingham News on Sunday, June 10 that over half of the CEO’s studied make more than $8.3 million.  In fact, of the companies listed in the Standard & Poor’s 500, the CEO’s received a combined $4.16 BILLION in 2006.  Yes, $4.16 BILLION.  That doesn’t sound like tort hell to me.

While it has become more and more difficult for individuals to obtain justice in this country due to tort reform measures, CEO pay has increased exponentially.  According to the article, if the minimum wage had increased at the same pace as CEO pay since 1990, the minimum wage would be $22.61/hour.  Contrast that to the increase passed by Congress this year – a whole $5.85/hour.  Wow, it sure seems like there is a lawsuit abuse problem out there. 

Top Ten in Compensation for 2006:

1.  Terry Semel     Yahoo     $71.7 million
2.  Bob Simpson    XTO Energy     $59.5 million
3.  Ray R. Irani     Occidental Patroleum     $52.8 million
4.  E. Stanley O’Neal     Merrill Lynch     $46.4 million
5.  H. Lawrence Culp Jr.     DanaherCorp.     $46.2 million
6.  Angelo Mozilo     Countrywide Financial   $43.0 million
7.  Alan Mulally     Ford Motor    $39.1 million
8.  Todd Nelson     Apollo Group  $32.6 million
9.  Edward E. Whitacre   AT&T   $31.8 million
10. Louis Camilleri    Altria Group    $31.7 million

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One Response to “CEO Income on the Rise”

  1. James McMullan Says:

    I find it especially frustrating when the CEO is let go for bad performance and (besides receiving a golden parachute) they are almost immediately hired by another company. And, usually for more money. I think some of these hiring and/or compensation committee members ought to be held accountable for such behavior.

    James
    Birmingham

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