Re: Outrageous CEO Pay

From: Miriam English (
Date: Tue Sep 11 2001 - 20:13:42 MDT

At 04:02 PM 11/09/2001 -0700, Peter C. McCluskey wrote:

> If this were a significant problem, I'd expect people who get most
>of their income from stocks to be more concerned about this than
>people who own few stocks, and I'd expect CEO pay to be lower in
>very competitive industries than in monopolistic industries. I see
>little evidence that either is the case.

I was working in a small company last year that was wanting to do some
really cool stuff. I, and the others doing the grunt programming and
designing worked hard on low pay, while unknown to us the two who ran the
company went thru vast amounts of money quite irresponsibly, accruing all
the trappings of immense personal wealth. They drove the company into the
ground. I left just before the end when I started to see what was happening
(I was owed a month and a half of pay by that time. A friend of mine stayed
longer due to the sweet words and persuasiveness of the owners. He is out
by something like 5 months pay. The two owners are still well off and can't
be touched. None of us workers have any likelihood of ever getting our pay.

I know that the owners didn't intend to milk the company to death, but that
is what they ended up doing. They were like kids in a candy store and
wanted it all... and they thought that they deserved it.

Q. What is the similarity between an elephant and a grape?
A. They are both purple... except for the elephant.
Virtual Reality Association

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