Ceo’s and You

The website http://www.aflcio.org/corporateamerica/paywatch/index.cfm talks about many different things in the business world. Mostly they concentrate on CEOs and the difference in pay between them and their workers. In 2002 CEO pay increases by 6%, more than twice the growth of their workers paychecks. After clicking on “2002 Trends in CEO Pay,” I found that even poorly performing CEOs are rewarded with compensation packages that go way about requirements. As a result, shareholders and even the company lose money.

While CEOs are making the big bucks while even doing poorly, shareholders are losing out. From 2000-2002, shareholders lost over $7 trillion. This is bad because many shareholders of a company are workers for that company and depend on this money for retirement. Every time their stock goes down, they lose retirement money, much like the Enron workers.

Many CEOs do not deserve the big paychecks that they receive. A good way to find out if a company’s CEO is actually earning their pay is to check out the company’s stocks. If the share price is at the high-end during the end of the 52 week’s, then normally the CEO of the company is doing something right and earning his or her money. One can also tell how the company is doing by watching if executives of the company are buying or selling shares. Check out the Wall Street Journal and see if the CEO did better or worse then analysts predictions. If the company did better, the CEO is most-likely earning his or