Corporate Pay and the Minimum Wage

An Astounding Factlet

The CEO of Oracle is paid $78 million dollars a year–mostly in no or low-tax earnings. That translates to $37,500.00/hr assuming he works 52 weeks a year and 40/hrs a week. More if he gets vacations. (Not to mention other assets that Mr. Ellison possesses, amounting to about $50 billion). To make matters more complicated we have gotten accustomed to ways of “measuring” the economy so that this counts as a positive.

There is NO WAY democracy can flourish when the top 100 or so CEOs are each richer than any of the ancient Egyptian pharaohs, Chinese emperors, or Marie Antoinette and family. Especially with recent court ruling about spending on elections. But then, those past figures weren’t pretending to lead the forces of freedom and democracy.

$37,000 (plus) dollars an hour. It’s unimaginable. But we’re told that without such monies, Mr. Ellison wouldn’t be doing as well for his beloved Oracle. Of the top 100 CEOs, the average is a mere $13 million annually ($6,250.00/hr) –hardly worth mentioning. Of course, there’s no evidence that their lower rate of pay has cost their companies profits.

Yet, these same CEO’s lead the charge against raising the minimum wage–from $7.50 to $10 an hour (to almost what Mr. Ellison makes per second).  Somehow, by their logic, a handful of individuals controlling most of the wealth and resources of the country is not bad for the economy. But requiring them to pay the poorest of our workers enough to feed their families, much less buy the consumer goods required to keep an economy going will be bad for “the economy,” by their logic.

8 Responses

  1. Reblogged this on .

  2. Raising the minimum wage leads to higher prices, lower demand, lower profits and fewer jobs. Increasing the pay of CEO’s have none of those effects, or so the arguments of those who oppose minimum wage increases and CEO compensation would have us believe

    • That is the claim that higher wages creates inflation and lowers jobs. However, if people can buy things jobs are actually created to meet demand. I have seen no evidence from the past or other countries of lost jobs from higher minimum wages. Minimum wage has not kept up with inflation. And actually increasing wages to CEOs does have the effect of less jobs as there is less consumer demand when all the money is in the hands of a few who mostly spend it to destroy jobs and influence elections to get themselves richer and everyone else poorer, and the money spent on their compensation could pay for thousands of jobs, or an increase in pay to those already employed.

      • Jobs like relationships are activities that happen over time. There are few people with 2 years of experience making minimum wage and many of the millionaire CEOs started at minimum wage. All you are doing by increasing the minimum wage is making it harder for entry level workers to get a shot and for students to get jobs.

        But I do strongly support a maximum salary for CEOs….maybe a 95% tax above 1 million. There is no way a CEO needs 1 million to do his job.

      • The idea that raising minimum wage reduces jobs is not backed by any hard evidence. In fact many believe it would increase jobs by creating more disposable income. There is more evidence to support this latter theory than the former in terms of past experience.

  3. […] latest New York Times list of America’s most highly paid CEOs. Ellison makes more per second, notes analyst Deborah Meier, then the current federal hourly minimum […]

  4. […] latest New York Times list of America’s most highly paid CEOs. Ellison makes more per second, notes analyst Deborah Meier, then the current federal hourly minimum […]

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: