Nearly a million dollars a year as CEO

Discussion in 'Politics, Religion, Social Issues' started by Shivetya, Mar 12, 2010.

  1. Shivetya macrumors 65816

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    #1
    of a hundred million dollar company.

    Oops, charity

    http://apnews.myway.com/article/20100312/D9ED2S4G0.html


    WOW.

    Of course one United Way's payouts for even regional directors is one reason I do not donate to that group, who would have thought that the Boys and Girls Clubs of America paid so well, let alone the money spent on trips!
     
  2. djellison macrumors 68020

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    #2
    Have you thought about comparing this salary to other salaries for CEO's of >$100m/annum companies? I'd wager it's there or there abouts as well.


    Charities are businesses. They need good, experienced business minded leadership. That leadership costs money. There is no reason why it should cost any less for a charity.
     
  3. leekohler macrumors G5

    leekohler

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    #3
    They don't need to be paying anyone a million dollars a year. This is the reason I never donate to the United Way. That's ridiculous.
     
  4. miloblithe macrumors 68020

    miloblithe

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    #4
    Have you thought about reading the article? :)

     
  5. Rodimus Prime macrumors G4

    Rodimus Prime

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    And that makes it right?

    CEO pay is out of control across the board. It needs to be rein in big time.
     
  6. mkrishnan Moderator emeritus

    mkrishnan

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    #6
    So, to follow your line of reasoning... it's been established that mid-term (~5 yr) financial performance of publicly traded companies is inversely correlated with CEO salary. So, since it's been shown that public companies are making a bad decision when they choose high-pay CEOs, why would the same logic not extend to charities? :confused:

    My understanding is that the United Way does some good things locally, but I'm curious about this. I do donate to them... but maybe I should be looking more carefully.
     
  7. leekohler macrumors G5

    leekohler

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    #7
    My company "encourages" us to donate (in other words, pleady, guilt-inducing e-mails), which right away sets off alarms in my head.
     
  8. mkrishnan Moderator emeritus

    mkrishnan

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    #8
    There is a certain scamishness to it -- every company I've ever been at that did a United Way drive did this.

    OTOH, I got a caring card from them, this year, and the savings are actually quite significant -- the Aveda I go to alone, if I use it religiously, would probably come to savings that are something like half of my donation to UW, just by itself (for services I buy from Aveda anyways). So, maybe, if I'm crafty, it basically moves a lot of money around between corporations, and some of that money wends its ways to charities.

    That would still make it less of a scam than Product RED.... :eek:
     
  9. Hmac macrumors 68020

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    Right, because this is America dammit and it's not fair that someone should make more money than I do, even if it is a non-government corporation.

    We should all make the same, no matter what our job is.
     
  10. leekohler macrumors G5

    leekohler

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    #10
    :rolleyes: No one said that. That's ridiculous. Please stay on the plane of reality. Of course some people will make more than others. But there is no reason that someone running a charity should be taking in a million a year. It's a CHARITY for god's sake.
     
  11. niuniu macrumors 68020

    niuniu

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    #11
    I'm sure he could do his job just as well for half that, and give the other half to charity and save lives with it.
     
  12. Desertrat macrumors newbie

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    #12
    The deal for any charity is the percentage of its income which goes to overhead vs. how much goes out in charitable spending. The accepted maximum overhead for a "real" charity is around 15% at most; preferably less.

    My reason for not contributing to United Way is that as an umbrella organization, it gives to groups with philosophies to which I object. So, I spend my money elsewhere.

    As far as CEO remuneration, would it be seen as fair for a person in that decision-making position to be paid via salary and bonuses which are based upon a percentage of profit? If so, what percentage?
     
  13. Hmac macrumors 68020

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    Getting back to the plane of reality, it's a BUSINESS, for god's sake!

    As to Rodimus Prime's statement "CEO pay is out of control across the board. It needs to be rein in big time", it's pretty clear what he meant, and that's that somebody should impose a cap on how much a CEO of a non-government corporation should get paid. How do YOU interpret that statement, down there on your plane of reality?
     
  14. leekohler macrumors G5

    leekohler

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    Bottom line- NO ONE HERE SAID EVERYONE SHOULD MAKE THE SAME AMOUNT OF MONEY. Rodimus' statement can't be interpreted that way. That's utterly ridiculous.

    Please point to where anyone here said that, because no one did. That's reality.

    And a charity is supposed to be in the business of taking care of others. It seems to be more than disingenuous to pay a CEO of a charity a million a year, especially when no other charity even comes close to that.
     
  15. flopticalcube macrumors G4

    flopticalcube

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    #15
    I have always objected to the UWs campaigning inside businesses. I remember people being given paid time off to do fund raising for them during business hours and always found that strange. Charities that push for donations like that always turn me off and now I have another reason to not give to them. CEO pay has been rising faster than average wages for nearly 30 years now and it is getting a little absurd, even for the most ardent capitalist.
     
  16. ucfgrad93 macrumors P6

    ucfgrad93

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    Agreed. The bottom line is how much of each dollar goes to charity and not overhead. When my old employer pushed for all employees to donate to United Way, I usually chose a specific charity in United Way and earmarked my donation toward that organization.
     
  17. leekohler macrumors G5

    leekohler

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    The problem is- how can you be certain that's where your money went?
     
  18. Tomorrow macrumors 604

    Tomorrow

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    I don't oppose the idea of CEO's earning high salaries - if they earn them in the eyes of the board, or shareholders, or whoever determines the CEO's salary.

    There's an incredible amount of responsibility on the shoulders of a CEO, the person who, more than anyone else in the company, is responsible for the overall performance of the company, its stock price, its profitability, its marketing image, etc. And there aren't a whole lot of people who can do that job and do it well - hence the high salaries for the ones who are good at it.

    BUT -

    The United Way is a charity. As you pointed out, seeing that the CEO makes that much money certainly has an effect on many people's perception and their propensity to donate to the charity. It would give many people reason to hesitate because they wonder how much of their donation goes to the CEO's salary and how much goes to actually helping people.

    A high salary for the CEO of a charity isn't in and of itself a bad idea, but you have to remember that a big part of getting people to donate to the charity in the first place is showing responsibility with your money. A $1M salary in this case might not be the best idea, unless the board is convinced that having this particular CEO in the job at that salary is better for their bottom line than a different CEO in the job at a lower salary.
     
  19. Zombie Acorn macrumors 65816

    Zombie Acorn

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    non-profits aren't really non-profits at all, they inflate their salaries well above what the market dictates for their work and its considered an operation expense.

    Charities are not as demanding of a CEO as a regular corporation would be. People are handing you money for free. A basic charity needs someone handling logistics, advertising, and networking. Oh and damage control for when you pay your CEO $1 million out of the donations of others.
     
  20. Hmac macrumors 68020

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    What right does ANYONE have to "reign in CEO salaries"? The concept is absurd and absolutely reflects an element of socialism that goes even beyond the detrimental socialism found in Scandinavian countries. Government interference of "reigning in" CEO salaries of ANY corporation, including charities, is repugnant and unwarranted.

    You want to "reign in" CEO salaries, buy stock and place your vote at the next shareholder's meeting. And non-profits are corporations too, and have Boards of Directors. In that case you can vote with your donation dollars instead of a ballot.
     
  21. ucfgrad93 macrumors P6

    ucfgrad93

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    Just have to have faith that they did what I indicated on the form.
     
  22. leekohler macrumors G5

    leekohler

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    Umm... that isn't what you said the first time. You said that people were saying that everyone should make the same amount of money. Is that what you said, or not?

    And Scandinavian countries doing badly? Really?

    http://www.cbsnews.com/stories/2009/10/05/world/main5363901.shtml

    And here's another idea- if I don't like what a company's practices are, I don't have to buy what they're selling, which is exactly what I've said.
     
  23. Rodimus Prime macrumors G4

    Rodimus Prime

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    You complete missed the point of my statement.

    CEO pay is out of control. 20 years ago it was what 20-40 times average work salary. Now that same number is over 400 times.

    Profits have not increased that much nor has business so it is pretty much out of line and out of control.

    CEO get huge bonuses while tones of there works are laid off. Maybe it is time to start firing CEO because you save 400 jobs per CEO you fire.

    No were did I say that everyone should be payed the same no should I expect it to be. But I would say pay gap between the tops and bottoms of companies should be brought more in line.

    CEO pay in the US is over 2 times the average of other developed nation.

    You try to argument profits go down CEO should take a big pay cut because they failed instead they get bonuses and people are laid off.

    The point I was making is CEO pay is really out of line and it yes it is truly sad that it has gotten to the point that the government almost if not needs to step in and force it back in line.

    please explain to me why 20 years ago CEO pay was 20-40 times the average worker and today it is over 400 times. Profits and revene have not increase over 10 fold in that amount of time. CEO pay is rising at a quicker pace than profits are.

    now the fact that United Way is that bad they can kiss me ever donating to them again good bye. I need to start pulling data on how much any place I donate to how much of it goes to administration cost (that includes pay, advertisements ect.) if it is over 5-10% they get no money from me.
     
  24. GfPQqmcRKUvP macrumors 68040

    GfPQqmcRKUvP

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    You didn't address his point at all, but your populist fervor is noted.
     
  25. mkrishnan Moderator emeritus

    mkrishnan

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    #25
    In Rodimus's defense (and others), Hmac is the only person in this thread talking about any kind of governmental intervention or "reigning in" of salaries. As for the rest of us, many of whom give money, have given money, or have been asked to give money to the United Way, we are perfectly legitimate stakeholders, and we have a perfectly reasonable expectation of the right to discuss the compensation practices in which the United Way engages, don't we?

    Now, as stakeholders, we are entitled to bring our values to the table, when we talk about compensation at United Way. In Rodimus Prime's case, it would seem that CEO pay should be linked to metrics both of company performance (e.g., profit, or whatever analogues exist in this case) and employee welfare (e.g., the pay and working conditions of rank-and-file employees).

    As a person who has an interest in United Way's behavior, I don't see why he doesn't have the right to complain about it. Does that mean there should be a major government intervention to address CEO pay? None of the liberals in this thread have suggested that.
     

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