If I were a shareholder of a corporation and heard news that the corporation paid a CEO $14 million to be fired (this is what the Gap just did), my stock would instantly be sold. Sadly this is something we hear about more and more.
Luckily we have a Democratically controlled Congress, and one Representative Barney Franks who now chairs the House Financial Services Committee, to try and make changes to this horrible system. Rep. Franks was on FOX news a few weeks ago trying to explain how he wants to put more power in the hands of the shareholders. Of course Neil Cuvato wouldn’t here of anything like that:
Cuvato constantly tried to reword what Frank’s was saying and making it out like Barney was trying to hurt the poor little CEO’s.
This country has taken a very damaging turn in terms of economic fairness. In 1980, the average CEO earned 42 times what the average employee in his company made. Today he earns more than 300 times (more than a 600% increase). This dangerous practice is quickly creating a larger gap between America’s working class and upper class.
Last night, CNN was discussing the 2008 Presidential race. They reported that it is expected for Hillary Clinton alone to spend $500 million in her campaign. With this high price tag to run for public office coupled with the increasing economical gap in our society, we are quickly creating a new aristocratic social group. This of course will destroy everything America ever stood for. Hopefully Barney Franks will be able to get this new legislation through, however I am sure Bush would veto such a thing. His entire administration has been based on rewarding the failures.