FT132: “To settle CEO pay once and for all we should peg it to the pay of athletes, the Hollywood elite, musicians and authors.” -Old Pithy
Sports Stars only Work Part Time yet they Earn almost as Much as CEOs
It’s open season on rich CEOs. From the Occupy Wall Street movement to the Obama Campaign attacks on Republican candidate Mitt Romney. CEOs are too rich. They don’t pay enough in taxes. And they hate children. Because they oppose higher tax rates on their income. Which can only mean one thing. They hate children. At least if you listen to those on the Left.
So how well paid are they? Well, they are paid well. But not as well as some well-paid rich people. Especially those typically associated with the Left. High earning sports stars. High earning Hollywood elites. High earning superstars in music. And high earning authors. There are some conservatives in these fields. But it’s hard to know who they are. Because they tend to hide their politics to avoid undue attention on themselves. Whereas liberals can be as outspoken and as critical of conservatives as they wish and never bring any undue scrutiny on their incredible high earnings. Why? It is the great unspoken rule in being filthy rich. If you are an outspoken liberal you can be as filthy rich as you want and you will never hear an unkind word about your obscene wealth. So let’s look at some filthy rich people. Let’s look at the top 10 annual earners in the following sectors (see links above for source information):
Of the sectors shown CEOs are only richer than sports stars. But not by much. Which says a lot about the earnings of sports stars. For sports are seasonal. They have off-seasons. And yet they make almost as much as CEOs. Who work year round. But other than the part-time sports stars the filthy rich CEOs are less filthy rich than the Hollywood elites, superstars in music and authors.
No One says that Musicians Earn too Much even though they Earn More than CEOs who Earn too Much
The median household income at the end of 2011 was $ 51,413. Some may say this is rich. If you’re making minimum wage perhaps it is rich. But it’s a long way from those noted above. Interestingly many of these people will say CEOs earn too much. Some may even say these sports megastars earn too much. But not many. Few if any will criticize Hollywood elites, superstars in music and authors. Even though they live a far better life than they could ever imagine. Why? Because these rich people say they care for the little guy. And support Democrat candidates for office. Which, of course, takes the spotlight off of their obscene wealth. And they can insulate their lives from the policies of Democrats. Which tend to be anti-business. Including high taxes. A complicated tax code. And high regulatory compliance costs. So CEOs tend to support Republican candidates. Who tend to fight the anti-business policies of Democrats. Because they hurt the businesses they’re responsible for. Which, of course, makes them look greedy. And like they hate children.
So how do these filthy rich people compare to the median household income? Like this:
The sports megastars are the pauper of the group. They only earn 780 times the median household income. Musicians are the filthiest of the rich coming in at 1,701 times the median household income. Meaning the average income of the top ten superstars in music equal the median income of 1,701 households added together. Another 687 households more than the average income of the top ten CEOs. Yet people say CEOs earn too much. But no one says that musicians earn too much. Even though they earn more than those who earn too much.
If CEOs are Overpaid then so Must Everyone who is Paid More than Them
People tend to pick on CEOs. Because they are highly compensated. Not as highly as musicians, the Hollywood elite or authors. But highly. They get those high compensations for a reason, though. A few bad decisions at the top can ruin a successful business. Whereas the CEO who consistently makes good decisions will make a business grow. Creating wealth. And jobs. At the CEO’s business. And all the businesses that feed into it. Thanks to the stages of production. So a good CEO can create a lot of economic activity. Wealth. And jobs. Not to mention a whole lot of tax revenue. Which fund all those Democrat programs. Including the ones for children.
The other filthy rich create jobs, too. And wealth. But nowhere near what a good CEO can create. For few of them are singularly responsible for building their industries. Unlike a John D. Rockefeller. An Andrew Carnegie. A George Westinghouse. Or a Steve Jobs. These people changed the world. And put hundreds of millions of people to work through the years. Compared to the limited economic activity a pop star creates. A movie star. An author. Or an athlete.
So a CEO creates more wealth and jobs for others than most filthy rich people. And they create more tax revenue at all levels of government than most filthy rich people. So one would think they would deserve higher compensation for all the good they do. But no. At least according to those on the Left. So what would be fair? Call them musicians? Movie stars? Authors? If so then we could even pay them more. For no one complains about their high compensation. Or should we cut their pay? As well as musicians, movie stars and authors? And sports stars? Pay them all less. For if CEOs are overpaid then so must everyone who is paid more than them. Of course that probably wouldn’t go over well with the athletes, the Hollywood elite, the musicians and the authors. So perhaps to settle the CEO pay issue once and for all we should peg it to a weighted average of the pay of athletes, the Hollywood Elite, musicians and authors. So the amount of compensation just doesn’t matter anymore. Because they will be as filthy rich as the people the Left has no problem with being filthy rich.
Tags: athletes, authors, CEO, CEO pay, compensation, conservatives, Democrat, economic activity, filthy rich, high compensation, high earning, Hollywood elite, jobs, liberals, median household income, movie stars, musicians, obscene wealth, overpaid, rich people, sports stars, superstars in music, wealth