What a Curious Statement

July 5, 2007

Ellen Simon reported this morning in the Washington Times that business leaders are making more money. One statement at the beginning of the article caught my attention:

Business bigwigs pocket billions - Nation/Politics - The Washington Times, America’s Newspaper

Compensation for America”s top chief executives has skyrocketed into the stratospheric heights of pro athletes and movie stars: Half make more than $8.3 million a year, and some make much, much more. (emphasis added)

Executives of companies help a business produce something. Athletes and other entertainers (yes, athletes are really just entertainers) do only that - entertain people, not produce something.

Why is it that when a business man or woman makes money for a company (including increasing the share price of its stock), they shouldn’t be compensated at a level comparable to people who sing or dance, or chase each other around a grassy enclosure?

What the online edition of this article didn’t include was a graph purporting to show that executive pay had shot way up since 1991. On page 8 of the print edition, the graph shows that pay in 1991 was about $5 million or $6 million per year. Now, according to the text, it has skyrocketed to $20 million per year.

What the text fails to note is that the chart shows that this is a drop of about 40% from the real peak in 2000 (ooh, wait, previous administration, please ignore). The real peak was at $35 million per year to which it had traveled at warp speed during the previous administration.

I wonder why that wasn’t mentioned.

Source: Business bigwigs pocket billions - Nation/Politics - The Washington Times, America’s Newspaper

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