Greed greed greed!


I mean seriously, you would think that a CEO making $1 million a
year would be able to be content right? Wrong! Thank goodness for John Bakija
et al. because without them deciding to get authorization to look at people’s
income taxes we might have never known who that .1% of the country was who controlled
10% of the wealth. Since 1970 there has been a steady increase in the income
difference between the rich and the poor; a concept that most have either heard
of or witnessed firsthand. It is just shocking to me that it is only last year
that thanks to economists Bakija et al. we can put names and industries to the
statistics.

The article Why Executive Pay, written by Peter
Whoriskey, highlighted the two different lives of CEOs of Deans Foods who lived
in two different eras. Kenneth Douglas was the CEO of Deans Foods in the 70s
and makes a salary of $1million a year and lived comfortably. He as often
offered more money by the board but often rejected the pay rise because he felt
that too much money would corrupt his morals. Fast forward to 2010 and CEO
Gregg Engles makes 10 times as much as Douglas, owns a $6milllion house, and
travels the world for business and pleasure in the company jet. Overpaying CEOs
is a trend in our society that has led to unsustainable spending, as I’m sure
Engles felt when the economy crashed and he had to take a $6million pay-cut
which would have drastically changed his lifestyle choices from extremely
wasteful to just wasteful.

Whereas Douglas would insist on excess profits going to the shareholders
and workers, Engles would pay himself higher bonuses. Because of people like
Engles, the USA has the same ratio difference in rich and poor as Nigeria,
Uganda, Ivory Coast, and Jamaica. The difference in income disparity can be
seen in one neighborhood to the next.

Whoriskey also talks about the public perception to those who are
able to manage their success and money. When people remembered Douglas they
beamed and remember a man who cared about them and was humble enough to know
when enough was. Engles is a name infamous around Dean Foods as the workers,
especially the ones there long enough to have seen both Engles and Douglas, loath
his money and his ability to flaunt it without considering the welfare of his
workers.

It’s tough for a lot of people who are looking up because there is
no more down, but as long as people like Engles continue to hold tight to their
high life the less chance the poor have to climb out of the mire.

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3 Responses to Greed greed greed!

  1. Jordi says:

    This is fine, but not in the scope of what I said on Friday I wanted this week to focus on. It was in an email…

  2. Pingback: “Let’s make ‘em work for their millions!” | Biz Gov Soc

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