Corporations Exploiting CEOs

From Slate Magazine:

“The CEOs of the Big Three automakers promised last week to limit themselves to $1 personal salaries in return for federal bailout money for their cash-strapped companies. If that happens, they would join a number of top executives—like Whole Foods’ John Mackey, Apple’s Steve Jobs, Yahoo’s Jerry Yang, and Google’s Eric Schmidt—who get paid a single dollar. Does a salary like that get paid out all at once, or do you get a check for 4 cents twice a month?”

Which no one in America is outraged about. But then there is this…

“A dollar a year—or about 1.9 cents a week—is way less than the federal minimum wage of $6.55 an hour. Does that mean these symbolic salaries are illegal? Technically, yes. According to the Fair Labor Standards act, executives can be exempted from hourly minimum wage laws (and the requirement that they be paid for working overtime) only if they get paid a salary valued at $455 or more a week. Being paid on a “salary basis” means you get compensated a predetermined amount, regardless of how many hours you work or how good your work is. So even though dollar-a-year CEOs tend to get other kinds of benefits—options, shares, Gulfstreams—those probably wouldn’t count as compensation because their values aren’t fixed.”

There you have it. Companies are breaking the law and exploiting poor little CEOs. We should start a fund to help these CEOs through the holidays. This is technically below poverty making less than a dollar a day. Of course they live off more than that.

The rest is here.


Published in: on December 10, 2008 at 11:43 pm  Leave a Comment  
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