BellaOnline Forums Money Abundance & Wealth Should CEO be getting millions in pay raises?

I just read that the CEO of General Motors', Rick Waggoner, pay check rose 64 percent, to $15.7 million - Even though they are closing 4 plants and laying off workers.

Should CEO's of major corporations receive such enormous pay raises even with the economy the way it is? What are your feelings?

Here is an article from Fort Worth Star Telegram that came out just this morning. It also lists the top 10 CEO salaries. Many aren't even tied to company performance as some of these companies are struggling.

I don't think the current economy has anything to do with the fact that these CEO's are paid astronomically for what they do. Who could be worth that much?

When the rest of the country is struggling, these sort of salaries do seem pretty obscene.

I guess it always comes down to the fact that anyone's worth is just how much someone will pay them. If these businesses think they are worth that money,then they'll get it. Look at sports stars!

PS, Number 2 is Leslie Moonves, CBS Corp., at $67.6 million. Network TV is struggling right now too!

Here is a quote from the article.

But the AP analysis found that CEO pay rose and fell regardless of the direction of a company�s stock price or profit.

Take KB Home, battered by the subprime lending crisis and the weak housing market. According to the Los Angeles-based home builder�s proxy statement, CEO Jeffrey Mezger is entitled to a cash bonus based on a percentage of KB�s profit.

The problem was there was no profit. KB Home lost almost $930 million in 2007 and its stock lost 60 percent of its value. But Mezger still made $24.4 million, as valued by the AP, including a $6 million cash bonus.

The US has such a goofy corporate system where executives decide to reward themselves with huge salaries and bonuses. I believe the US should follow the lead of companies in Europe where they understand that executives work for the company and the stock holders. In Europe, any pay raise has to be voted on by the company's shareholders for approval. If the company does well,then most shareholders are fair and will agree to give the CEO a raise.

I'm a very strict capitalist, but I don't believe these CEO's are worth what they're being paid. Neither do I believe the same about professional athletes.

When my family can no longer afford to go to a professional baseball or football game, it's out of control.

A person should be paid what they're worth. It seems CEO salaries are no longer tied to performance but instead to what everyone else is getting paid. So it keeps going up and up. Same with athletes.

It's going to reach a head at some point. Shareholders must begin to demand total accountability for what their CEO's are being paid...but most shareholders are mutual fund owners who have no idea which companies make up the their retirement and pension funds.

Hopefully the market will bring CEO pay back to reality.

:-) Cate

This is a tough question for me. I think if a person has the skills and experience to be able to run a major corporation, then they should be compensated for it. HOWEVER, I don't think a CEO should be able to have any pull or influence in the matter of his salary. I think all salary increases should be voted on by shareholders. There should be some accountability. I wish we could vote on salary increases (or not) for members of Congress too. But they seem to be in control of that. It is like allowing children free run of a candy store. They will take all they can get while they can get it. It would be a rare kid indeed who said it was wrong to steal candy and that they were not going to do it. Don't know if that analogy is a good one or not, but it is kinda how it feels to me.