Inequality of Income
The "Occupy Wall Street"- type demonstrations have gone world-wide -- from Sydney to London, with violence in Rome.
Citizens around the world believe that they are the victims of ill-thought-out bailout plans, profligate, wasteful government spending and fat corporate cats being grossly overpaid while, at the same time, laying off thousands of workers -- often at the expense of customer service.
Two of their bones of contention are a shrinking middle class and inequality of income.
Good points, especially their concern of inequality of income.
Let's stay close to home to illustrate that point.
For example, in America, executive compensation is up 28% in 2011!
Our tax dollars bailed our some large financial institutions that, likely, would have gone out of business without that money and what do we get?
Higher bank fees and a CEO of a prominent bailed-out firm being paid $42,000,000 this year!
Where are the customers' yachts?
Rowboats, maybe.
A CEO who is performing well in his/her position is a substantial asset to any company...granted.
But, is it fair to pay a CEO a large "golden parachute" bonus after his company's stock tanked during his tenure?
No way! But it recently happened!
All of this as jobs have dried up, home values are under water and retirement plans have been decimated by the current financial malaise.
Let's start paying CEOs on reaching strict performance goals - and use some of the excess dollars not paid to CEOs to re-hire some of the employees that contributed to that company's success over the years.
If the financial services CEO who we previously referenced was paid one-half of his $42,000,000 compensation (how could he get along at $21,000,000 year or, about $400,000 per WEEK!)...his company could hire back 420 employees at $50,000 per year!
In short...stop paying corporate fat cats over-inflated compensation packages at the expense of the workers bees!
Ken and Daria Dolan have hosted their own national radio program for 22 years, anchored their own television shows on CNN, authored six books on money matters, served as money contributors on CBS This Morning and have now launched a comprehensive web site and free e-letter at Dolans.com.
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