Democracy Gone Astray

Democracy, being a human construct, needs to be thought of as directionality rather than an object. As such, to understand it requires not so much a description of existing structures and/or other related phenomena but a declaration of intentionality.
This blog aims at creating labeled lists of published infringements of such intentionality, of points in time where democracy strays from its intended directionality. In addition to outright infringements, this blog also collects important contemporary information and/or discussions that impact our socio-political landscape.

All the posts here were published in the electronic media – main-stream as well as fringe, and maintain links to the original texts.

[NOTE: Due to changes I haven't caught on time in the blogging software, all of the 'Original Article' links were nullified between September 11, 2012 and December 11, 2012. My apologies.]

Monday, February 11, 2013

High CEO Pay Relies On 'Self-Serving Myth': Report

A new report undermines a common rationale for paying chief executives huge sums.

The notion that CEOs will jump ship lured by the offer of better pay in another country is a "self-serving...myth," concludes research published Monday by the High Pay Centre, a London-based think tank.

Just 0.8 percent of CEOs in the Fortune Global 500 were poached while serving as a CEO in a different country, the report found.

North American companies rarely hire a CEO from another company, even in the same country. Eighty-seven percent of North American CEOs in the study were promoted from within. Just 3.5 percent of North American CEOs were hired away while serving as chief executive of another company, according to the study.

Yet despite the low turnover rates, pay for chief executive officers is rising at a rate that far outstrips the perfunctory raises seen among the corporate rank-and-file. Pay for CEOs in the U.S. rose 725 percent between 1979 and 2011. Worker pay rose 5.7 percent during the same time period, according to the Economic Policy Institute.

CEOs of U.S. public companies on average made $9.6 million in 2011, according to the Associated Press.

Original Article
Source: huffingtonpost.com
Author: Bonnie Kavoussi

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