Corporate Scandals Exposed Side Menu
Google
 
Scandal Articles
Scandal Articles
Scandal links
 

Widening Income Gap

Shareholders and workers in America are seeing more and more the unbelievable executive compensation packages offered to corporate CEO's and managers. According to the New York Times, in 2003 a CEO of a major company received an average of $9.2 Million dollars in total compensation.What's wrong with company Ceo's and top executives getting this kind of compensation? Every dollar of an executives settlement is a dollar the shareholders do not have, translating into smaller and smaller retirement savings for the American worker.

Average income of the top 1%
and of everyone else. 1913-2000.

Source: Emmanuel Saez, University of California, Berkeley, Department of Economics

 

Other Interesting Facts

:: Of the 100 largest economies in the world, 51 are corporations; only 49 are countries.

:: The Top 200 corporations' sales are growing at a faster rate than overall global economic activity. Between 1983 and 1999, their combined sales grew from the equivalent of 25.0 percent to 27.5 percent of World GDP.

:: The Top 200 corporations' combined sales are bigger than the combined economies of all countries minus the biggest 10.

:: The Top 200s' combined sales are 18 times the size of the combined annual income of the 1.2 billion people (24 percent of the total world population) living in "severe" poverty.

:: While the sales of the Top 200 are the equivalent of 27.5 percent of world economic activity, they employ only 0.78 percent of the world's workforce.

:: Between 1983 and 1999, the profits of the Top 200 firms grew 362.4 percent, while the number of people they employ grew by only 14.4 percent.

:: A full 5 percent of the Top 200s' combined workforce is employed by Wal-Mart, a company notorious for union-busting and widespread use of part-time workers to avoid paying benefits. The discount retail giant is the top private employer in the world, with 1,140,000 workers, more than twice as many as No. 2, DaimlerChrysler, which employs 466,938.

:: U.S. corporations dominate the Top 200, with 82 slots (41 percent of the total). Japanese firms are second, with only 41 slots.

:: Of the U.S. corporations on the list, 44 did not pay the full standard 35 percent federal corporate tax rate during the period 1996-1998. Seven of the firms actually paid less than zero in federal income taxes in 1998 (because of rebates). These include: Texaco, Chevron, PepsiCo, Enron, Worldcom, McKesson and the world's biggest corporation - General Motors.

:: Between 1983 and 1999, the share of total sales of the Top 200 made up by service sector corporations increased from 33.8 percent to 46.7 percent. Gains were particularly evident in financial services and telecommunications sectors, in which most countries have pursued deregulation.

 

Back to Archives

 

Home