Monday, October 29, 2007

The Sweetest Deal For A Job Not So Well Done

We live in a day and age when executives are paid fees that rival the gross national products of many small countries. Many are paid in the hundred's of millions of dollars (US), and receive a similar amount upon being shown the door.
Let's use an average American $1 bill as a unit of linear measurement. They are 157mm in length. So, if we call this an "uno", 100 million unos would stretch 15,700,000,000 millimeters. Convert that to kilometers and you arrive at 15,700. How far is that, you ask?
Try over 1/3 times around our little ol' planet Earth. That's a lot of money.
And some of these people are paid in multiples of that. That's multiples of hundreds of millions of US dollars. On average, the lower rungs of the pay scale within many of these companies is occupied by people making less than $30,000. If we took that as the lowest possible salary and $100 million as a typical high earning CEO's salary, we arrive at a ratio of 1:3333.3333... . Put another way, they make over 300,000 % more.
That goes beyond ludicrous as is. But what if that same executive sends the company into a financial tail spin? Then what?
Would you believe that for many their severance packages are just as lucrative?
What times we live in...

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