Pension Cuts Mean Poorer Future, Unless You're a CEO
The attack on public employee pensions is already having an effect on the wealth of families in the U.S. Unless, that is, you're family has a CEO in it.
New statistics released by the Federal Reserve show that, since 2007, the median income of Americans has declined about 8%, and the average income of Americans has fallen 11%. The net worth of Americans has also gone down -- by an average of about 15%.
According to the report, a significant component of this decline is the rollback of secure pensions for private and public employees. In California, over six million private sector workers lack access to any pension. As a result, more than half of current workers will reach retirement without the ability to meet basic needs.
While everyday workers are losing their retirement, one class of workers is bucking the trend and seeing its income rise: Corporate CEOs.
A new survey of corporate pay reported in the New York Times showed that CEO pay rose about 5% between 2010 and 2011. In some cases, CEO pay went up by nearly 500%.
The pay increases have, in some cases, been implemented in spite of shareholder votes opposing the hikes. In one instance, shareholders rejected a proposed nine-figure pay package. But since the vote was non-binding, the increase was implemented anyway.
