Executive Pay

I thought I might discuss CEO Pay Packaging this morning by way of an introduction by this article. I quickly decided I would have to make an in-depth review of the Issue, before I could establish a causal relationship for the increase in Executive Pay. An overwhelming much has been written about such Pay Packaging, and still relatively Few, if any, understand just how Executives managed to create a new Social spectrum class based upon Wealth. Just How was It done?

The basic Means to usurp the Money-making generator of Corporations came in the obvious form of disenfranchisement of the Shareholders. Corporate leadership accomplished this loss of Shareholder Voting equity by first serving the Shareholder’s interest: Stating Share Price had to remain within a marketable range; Shareholders unable to sell, buy, and Trade equity if the Asking Price was too high for efficient Market transactions; they achieving this End even if they initially had to authorize Split issuances of Stock. Anything they had to do was done, so that the Shareholders’ position was diluted, and Ownership was spread so that attendance at Stockholders’ yearly meetings became valueless. Such Attendance devolved to restriction to only Institutional Investment Stakeholders, who could be negated by venue of promised effective Rates of Dividend Return.

Corporate Management, once Shareholder equity had been nullified of Voting power, turned to Interior Lines of Communication; ensuring Outside Parties could not collect sufficient data on Corporate operations to organize a competitive Managerial policy. This was the effective elimination of an Alternative to the current Management, it basically taking the form of inability to reach the Stockholders with an understood alteration of Policy. Stockholders had a watered Vote, unknown Competitive management, and inability to discern what was the best Corporate management in the first place. The resident Corporate Management could at this point begin to redirect Profits from Corporate operations to themselves, having left Shareholders powerless to combat the trend. Here is the real causation of the growth of Corporate Executive Pay. lgl