Alarming revelations about the pay of American CEOs during the greatest economic disaster since the Great Depression.
USA Today reports that their pay went up an astonishing 27% in 2010. For ordinary Americans, at least those with jobs, pay went up 2.1%.
Of course, the reason CEO pay soared was because of all those options which they cashed in on in the bull market. As The Wall Street Journal tells us, their bonuses jumped 30.5%, the biggest gain in three years.
But as William Lazonick, professor at the University of Massachusetts told USA Today linked above, there is a disconnect here. "While companies in the S&P 500 boosted profit 47% last year, much of that was due to cost-cutting and layoffs, not from the creation of businesses and growth, Lazonick says. Revenue, a gauge of the money flowing into businesses for selling goods and services, grew at a much slower pace than profit – and ended the year up just 7%."
So in other words, American CEOS got rich at the expense of others. They made a killing by sacking people.