Workers and other stake holders need a place on corporate boards, like in
Germany. That would put a lid on such abusive CEO salaries.
So, Abigail Disney is worth half a billion dollars, which she inherited and
she's upset about a performance based bonus?She does have a
point, even though her math is incorrect. There shouldn't be such a big
difference between the highest paid employees and the lowest paid because they
all contributed to the company's success. CEOs may directed companies, but
they often aren't the ones that come up with good ideas, they help with
idea selection and execution.Most of my working life has been in the
stock market where I usually receive two bonuses. One based on how well I
performed and one based on how well the company performed. That works well for
established companies, but stock options works better for start-ups. There are
lots of studies that show compensation doesn't help performance, but being
under compensated can sure hurt as it caused me once to seek other employment
for a 40% pay raise.
To "Joyce Wilson" I looked, and this is what she said. Abigail Disney
said that for $55 million they could give a "15 percent raise to everyone
who worked at Disneyland." That is from the quotes the article provided. So,
Disneyland represents just one park. FYI Disneyland employs 23,000 people, plus
another 3,500 contractors that are not directly employed by Disney. With an
average salary of about $40,000/yr that means that the Disneyland costs $920
million/yr for salaries alone. A 15% increase is actually $138 million, so I
don't think Abigail actually knows what is going on at Disneyland.
RedShirtUofU - you may want to re-read what she said about the 15% raise to
every employee, not 15% divided by the number of parks.
To those of you attacking the bonus that Igers was given, remember that the
Government will take about 30% of it in taxes. Do you think it is fair for the
government to take that much of a bonus when they did nothing?To
"TAS" did you catch what she said about the bonus Igers got? It would
only give a 15% pay raise to Disneyland Employees only. So, lets take his bonus
and apply it to just the Disney parks.There are 12 Disney parks, and
assuming they all earn the same per hour, that would mean that you could give
all Disney theme park employees slightly more than a 1% raise. Now, lets expand
it to ALL of Disney, which include merchandising and movies. You are looking at
less than a 1% raise for all of those people.You see, in terms of
the company's overall performance, a $65 million bonus doesn't
actually amount to much if you spread it out evenly to everybody.To
"rkl" but the CEO leads the company. A bad CEO can destroy a company.
However, if a company makes a few billion dollars under the leadership of a
particular CEO, why shouldn't the CEO get a bonus?
I'm not saying all executive compensation is "fair" or
"reasonable." I'm also not saying that all entry-level employee pay
is "fair" or "reasonable." However, it's easy to compare
numbers and get angry. But remember, there are stockholders approving these
decisions. They seem to feel it's worth the money. Bob Iger is a brilliant
man that qualified himself sufficiently to become the CEO of a massive
organization and accomplish massive goals for the shareholders (the ones who
invested their money to own the business). He accomplished the acquisition of
FOX and continued massive profits. He got a massive bonus because he met the
criteria to earn it. Is it too much? I don't know, but his qualifications
and accomplishments are 1 in 50 million (at least), so I would expect his pay to
also be 1 in 50 million.Now let's look at the entry-level employees.
Do they work hard? Yes. Do they deserve to be recognized? Yes. However, they are
now earning $15/hour and have access to free education on Disney's dime.
That is incredibly generous considering that the only qualifications could be
knowing how to use a broom, acting courteously, and passing a background check.
They are 1 in 1.5. Fair?
Good on her. She's making a clear, concise argument. We need more people
to call out greed, lying, and dishonesty now more than ever.
Great to hear there are still people who think and express their kind thoughts
of others. Disparity erodes peoples willingness to engage in a meaningful and
cooperative way as illustrated by our current political climate. The Disney
legacy is something to be proud of and Abigail Disney has class and represents
the family well.
I believe it was John Adams who said this government would only survive under a
moral people. 65 mil/year is immoral. There are people who can't feed
their families. $15 starting wage is peanuts. We need to pass a law that says
the top dog can only take home (pay, bonuses, etc.) no more than 100 times the
low man on the totem pole. Ms. Disney is right, no one needs that much money.
It is certain that brilliant people create the jobs and sustain the companies;
it is also certain that the everyday worker keeps things moving. W/o the
everyday worker, the top dog would not be able to take home anything. It takes
everyone, working together, to make a company a success.
There are lots of creatives guys and girls. It’s not like there is a
small market for business genius, yet some CEOs are paid that way. CEO
salaries of many major US corporations are insane. I worked about 8 years for
Xerox. During the first six no one got any raises. Oh, did I say no one? My
mistake. The CEO’s compensation increased 40% during that period. Even
as the company wasn’t doing that well. From a pay-for-success standpoint
it didn’t make sense.And despite our struggling company she
was on the board of at least four other major companies. She was well
compensated for those services. Would any normal company allow an employee paid
time off to work at multiple other companies? Personally I don’t think
CEOs should be on boards, except perhaps for the company they manage.
Clearly Ms. Disney does not understand why bonuses for workers at any level are
a waste of corporate profits. The CEO always should be paid proportionate to
the value he/she brings to the company and its earnings, as should each and
every employee in that organization. Bonuses and salaries should
never be paid based on the profits of the company. Each employee has already
been paid. The profits of the company belong to the owners of the company.
I bet if she switched places with him she'd run the company into the ground
in less than six months. If Democrats took all the money CEO's made and
just gave it to average workers the price of milk (and everything else) would go
through the roof. In our type of economy that's just a given fact. Nobody
would be better off except Democrats; who would feel good about themselves for
punishing those mean CEO's. No thank you. Oh by the way. What about the
people who work for companies where the CEO doesn't make millions? Where
would their boost in pay come from? Seems unfair to me.
I firmly believe that politicians are afraid to offend the CEO's of
publicly traded corporate America, otherwise they would pass a law that made it
illegal for ANY top corporate executive to make more that 5 times the average
salaries of their employees. That way they would either make sure their
employees were more fairly compensated, or they would have to learn to live like
the rest of us. Obviously that wouldn't be the case if the company did not
have publically traded stock, but nearly all the big corporations have stock
holders, and are publicly traded.
It is the greed of CEO's and many others which will eventually be the
downfall of the U.S. Grreed is out of control. There isn't anyone worth
this kind of money - CEO's, athletes, entertainers, tech people, or anyone
else. You can have the good life on far less than this.
One of the first sensible things a member of the investor class has said in a
long time. The salaries of CEOs of major companies has gotten way out of hand.
It would do more good for society to give the workers who make an organization
successful a raise rather than give it to a CEO. I bet a person can live just
as well with 20 million rather than 65 million.