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<nettime> CEOs of Firms That Outsource the Most Jobs Got Bigger Pay
David Mandl on Thu, 2 Sep 2004 01:33:59 +0200 (CEST)


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<nettime> CEOs of Firms That Outsource the Most Jobs Got Bigger Pay


Outsourcing issues aside, what's the point of 
rewarding a CEO who's just saved the company 
millions of dollars by adding millions of dollars 
to his pay?  This kind of thing has become very 
common.  (Hint: "Direct transfer of wealth from 
the poor to the rich.")

------------------------------------

CEOs of Firms That Outsource the Most Jobs Got Bigger Pay

Associated Press
August 31, 2004 10:27 a.m.

WASHINGTON -- Chief executives of U.S. companies 
that outsourced the greatest number of jobs 
reaped bigger pay and benefits last year, 
according to a new study of executive 
compensation being released Tuesday.

Average CEO compensation at the 50 companies 
outsourcing the most service jobs rose by 46% in 
2003 from a year earlier, compared with a 9% 
increase for CEOs at 365 big companies overall, 
the study by the left-leaning Institute for 
Policy Studies and United for a Fair Economy 
found.

Outsourcing of jobs has become a sensitive issue, 
and President Bush has largely avoided the 
subject in public appearances during the 
political campaign. Some of his economic advisers 
have said that exporting labor to low-cost 
countries will reduce business costs, boost 
companies' financial performance and thereby 
improve the U.S. economy.

The two groups' annual "Executive Excess" report 
said average CEO pay at the "top 50" outsourcing 
companies was $10.4 million (8.6 million) last 
year, compared with $8.1 million for the 365 
companies.

The study also found that CEOs of the 70 
companies that helped finance this summer's 
Democratic and Republican National Conventions 
had an average pay increase of 49% in 2003, 
compared with a 9% average rise for CEOs overall.

The report noted that after two years of 
narrowing, the pay gap between CEOs and employees 
rose again in 2003, to 301:1 from 282:1.

The U.S. job market has been soft, with stagnant 
wages. Hiring came to a near-standstill last 
month, with companies adding just 32,000 new jobs 
overall, surprising economists who had expected 
seven times as many.

-- 
Dave Mandl
dmandl {AT} panix.com
davem {AT} wfmu.org
http://www.wfmu.org/~davem

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