Re:Britain Looks to Address Inequality with Executive Pay Me...
by adventured on Wednesday August 30, 2017 @04:24PM
(#15135679)
> Do you know what the result was? MASSIVE increases in executive pay.
That's not what massively increased executive pay. The stock market boom - starting from the early 1980s and accelerating in the mid 1990s to now - is what generated the hyper spike in executive compensation. You can directly trace all big increases and drops in executive compensation, going back 50 years, with the S&P 500's movements.
Jul 1964 to Apr 1982, the S&P 500 went from 84 to 109. Call it 30% over 17 years. Read that again and again until it sinks in.
From Apr 1982 to Oct 1993 it went from 109 to 466. Call it near 300% in 11 years.
From Oct 1993 to today, 24 years, it has gone from 466 to 2457.
The only reason executive compensation has soared so dramatically, is because so much of it is tied to stock compensation.
If we're talking base salary, the NBA's total league roster (~450 players) earns as much as all Fortune 500 CEOs combined.
That's not what massively increased executive pay. The stock market boom - starting from the early 1980s and accelerating in the mid 1990s to now - is what generated the hyper spike in executive compensation. You can directly trace all big increases and drops in executive compensation, going back 50 years, with the S&P 500's movements.
Jul 1964 to Apr 1982, the S&P 500 went from 84 to 109. Call it 30% over 17 years. Read that again and again until it sinks in.
From Apr 1982 to Oct 1993 it went from 109 to 466. Call it near 300% in 11 years.
From Oct 1993 to today, 24 years, it has gone from 466 to 2457.
The only reason executive compensation has soared so dramatically, is because so much of it is tied to stock compensation.
If we're talking base salary, the NBA's total league roster (~450 players) earns as much as all Fortune 500 CEOs combined.