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Striking auto workers want a 40% pay increase–the same rate their CEOs’ pay grew

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Re: Striking auto workers want a 40% pay increase–the same rate their CEOs’ pay grew

#541

Post by IG_Semmelweiss »

smugma wrote: post #529
IG_Semmelweiss wrote: post #414

Earlier quoted context omitted.

Defined benefit plans?? The only defined benefit plan left is social security , which is fast going into insolvency in exactly a decade, and where it will automatically be cut 25% once that happens!

“contrary to a common misunderstanding. In 2035, if nothing else is done, the program could pay 80 percent of scheduled benefits, mostly out of workers’ ongoing contributions, a figure that would slip to 74 percent in 2096” https://www.cbpp.org/blog/social-security-is-not-bankrupt

Thanks for the 5% correction. I'd have to research more to be sure, but I'll give you the benefit of the doubt.

My point remains, to be in support of defined benefits, you must not be OK with unilaterally changing the de-facto definion of defined-benefit for SS?

How is it OK to literally pull the rug under people that paid - all their lifes - with the promise to get X on retirement, and will now get X-Y instead ?

Re: Striking auto workers want a 40% pay increase–the same rate their CEOs’ pay grew

#542

Post by seanmcdirmid »

bufferoverflow wrote: post #512
seanmcdirmid wrote: post #507

Just wondering, but are any of the American car companies doing well besides Tesla? Every year they seem more irrelevant, even Texans will buy Japanese pickup trucks these days. I just don’t see them rich enough to pay their CEO or workers 40% raises, and that increase is just going to be temporary as their business become less viable and layoffs or insolvency follows.

Best-selling cars in the US are • Ford F-series(F-150 being the most popular car in the US) • Chevy Silverado • RAM Pickup • Tesla Model Y • Toyota Rav4 • Honda CRV • Toyota Camry • GMC Sierra • Nissan Rogue • Jeep Grand Cherokee So 6 out of 10 are American.

So 4 pickups? At least pickups are high margin now (they used to be cheaper than cars when I was a kid).

I guess American non-Tesla cars still are popular in places like Texas then?

Re: Striking auto workers want a 40% pay increase–the same rate their CEOs’ pay grew

#543

Post by ryathal »

mullingitover wrote: post #329

I'm surprised unions don't throw their weight around more via equity ownership in the company. Controlling the company directly is really the endgame move, once they control a majority stake, they're literally just negotiating with themselves for their labor contracts. Even better, if they're managing their pensions via investment houses, why not just build their own investment house and leverage their negotiating po…

US unions are notoriously anticorporate, they generally despise the idea of stock based compensation.

Re: Striking auto workers want a 40% pay increase–the same rate their CEOs’ pay grew

#544

Post by randomdata »

bagels wrote: post #279

People get really fixated on CEO pay. Its only of symbolic importance. Google says: 167,000 GM employees Mary Barra salary: $29M Distribute that salary across the whole workforce: $174 per employee They should really be talking about it in terms of inflation or profit margin. GM profit for 2022 was $21B

> Mary Barra salary: $29M

$2 million, actually. The $29 million is total compensation; mostly stock awards.

Re: Striking auto workers want a 40% pay increase–the same rate their CEOs’ pay grew

#545

Post by randomdata »

thisgoesnowhere wrote: post #508
bagels wrote: post #506

Earlier quoted context omitted.

Sure if the board thinks that you singularly deliver the value, why not?

I wonder why the board always seems to think they are the most important and therefore highly paid people within the company. So interesting how that works.

The article suggests that the CEO is usually the highest paid position in a company, not the board members. The board is the most important position, however, as it is the representation of the ownership.

Re: Striking auto workers want a 40% pay increase–the same rate their CEOs’ pay grew

#546

Post by danaris »

thewileyone wrote: post #483
SeanAnderson wrote: post #31

I've heard a counter-argument to this before and I'm curious to get other's take on it. Basically, the story goes that when an individual rises into a significant leadership position at a large enough company that the economic calculations become different. There's still an element of domain expertise, but, for the most part, leadership is leadership wherever you go. This implies that a leader could (potentially) mov…

"leadership is leadership wherever you go" Not all CEOs are built the same. Only a minority are able to cross industries successfully, the majority fail miserably. This is because elements that drives success are different between industries. Most of the time, if the CEO is successful one way in one industry, he/she would pursue the same path in another industry, without acknowledging that the second industry is diff…

> Only a minority are able to cross industries successfully, the majority fail miserably.

Now analyze that a little deeper: How do we know they were successful before they tried to cross industries? Solely because the company they were CEO of did well while they were CEO?

Absent a fairly egregious set of drastic changes (eg, Musk's Twitter), the success or failure of a company is both much more complicated than the contributions of any one person, including the CEO, and a trailing indicator. It is very easy for a CEO to make changes that will not be fully felt—for better or for worse—for years after they "step down to spend more time with their families".

We do not have good metrics for successful leadership. We just don't. And despite this, we have whole subcultures that have grown up around the idea that these people, who are often actively detrimental to the organizations they manage, are geniuses singularly responsible for the company's many-million-dollar (or even many-billion-dollar) profits.

Re: Striking auto workers want a 40% pay increase–the same rate their CEOs’ pay grew

#547

Post by HDThoreaun »

a_f wrote: post #530
burnerburnson wrote: post #379

Earlier quoted context omitted.

It's obviously wrong. NBA teams are a good counter-example. Nobody talks about the team's president/CEO/etc when prognosticating which team will be the best.

Do NBA CEOs get paid less than the highest paid players? I would expect them to get paid more.

It's not even close.

Re: Striking auto workers want a 40% pay increase–the same rate their CEOs’ pay grew

#548

Post by HDThoreaun »

skyyler wrote: post #532
burnerburnson wrote: post #357

Earlier quoted context omitted.

That's moronic. A good CEO at a fortune 500 company could have a $100M revenue impact. That same CEO could never be worth $100M to a local restaurant. The idea that the bigger company can't offer more to attract a better CEO just because both businesses employ janitors that make market rate is mind-numbingly stupid.

If they can afford to pay the CEO 100M they can afford to pay above market rate to the janitors, no? Do you have arguments or are you just going to call someone a “doo-doo head”?

Business's exist to make money, not give it away.

Re: Striking auto workers want a 40% pay increase–the same rate their CEOs’ pay grew

#549

Post by hellojesus »

vel0city wrote: post #471
hellojesus wrote: post #225

Earlier quoted context omitted.

It's zero of the bonus, of which the CEO had assigned a prior that made him choose that job over other offers he likely had. Performance based bonuses exist at virtually all levels of skill in companies. What you see as a catalyst for fraud could also be framed as a catalyst for incentivizing an outcome most likely achieved via hard/smart work. $1.5M is not nothing, but it's less than 1% of the CEOs potential compens…

What percentage of Walamrt's employee base probably has a significant part of their pay tied to performance? Home Depot? UPS? Amazon's 1.6M, not just those in Seattle making well into the six figures? Kroger? Albertsons? Target? Starbucks? You really think a bagger or cart grabber or barista is getting a performance-based bonus? These are some of the largest employers in the US. The vast majority of the US workforce…

When I picked groceries in a freezer for Target, my pay was based on my performance relative to the baseline performance as measured by engineers. If I picked at a higher rate than 120%, I was granted incentive pay. If I picked below 80%, I was on my way to termination. It was meaningful on a $13.50/hr job.

Re: Striking auto workers want a 40% pay increase–the same rate their CEOs’ pay grew

#550

Post by highwaylights »

tpmoney wrote: post #343
mullingitover wrote: post #278

Earlier quoted context omitted.

> Leadership is set by shareholders. Funny thing, I own a vast number of stocks through various means, either directly or via ETFs, and yet never in my life have I had an opportunity to weigh in on the salaries of anyone in the companies I hold equity in. > Public unions seem more undesirable. There we have the gov negotiating with itself with no external accountability, unlike your example. The government is negotia…

>Funny thing, I own a vast number of stocks through various means, either directly or via ETFs, and yet never in my life have I had an opportunity to weigh in on the salaries of anyone in the companies I hold equity in. Really? I get shareholder meeting notices for voting on compensation packages all the time. I admit that the chances of me personally shutting down the pay package of AIG's executive team is pretty mu…

Technically that’s true but the holdings of these public mega firms tend to be in the hands of many small holders such as you or I, who it’s well understood are unlikely to cause a fuss for the reasons you mentioned.
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