Here's a depressing data point,
pay rates for senior management in the United States are skyrocketing.
I guess running businesses into the ground, enforcing insane return to office mandates, and looting requires substantial remuneration, because ……… The Aristocrats!
US bosses’ pay is increasing at the fastest rate for at least 14 years, according to figures that critics say illustrate how ballooning reward packages such as Elon Musk’s risk exacerbating social inequality.
In 2024, median chief executive pay at S&P 500 companies has risen by 12 per cent, according to ISS Corporate, part of proxy adviser Institutional Shareholder Services. That compares with a 4.1 per cent year-on-year increase in US wage growth, according to official figures.
………
Executive pay “has gotten out of control”, [Former Exxon compensation committee chair William] George said. “This is going to cause a further split in our country between the haves and the have-nots. This is a grave concern to me because I think there will be a loss of trust [in companies].”
………
Peloton, Nikola, LendingTree and Paycom Software are among a handful of companies that have offered their chief executives mega stock grants only to see their share prices sink.
Of course they sunk. Excessive pay actually reduces performance according to studies done by Dan Ariely.
George said he was “disappointed” by major investors, such as BlackRock and Vanguard, that “don’t step up” against excessive executive pay awards.
This is insane and unsustainable.
The only question is whether this ends with regulation, or a gravity assisted French chopping center.
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