FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» Maharaja Foods PLC (MFL) ready for the Fall!
by ChooBoy Today at 12:27 am

» කොළඹ කොටස් වෙළඳපොල විශ්ලේෂණය - 2024
by ChooBoy Fri Jul 19, 2024 11:53 am

» Winds of Change: Sri Lanka's Banking Crisis is Stalling Renewable Energy Ambitions of Local Stalwarts of Wind & Solar Power
by God Father Wed Jul 17, 2024 10:11 pm

» Banking Sector Analysis
by God Father Sat Jul 13, 2024 7:57 am

» Impact of Elections on Colombo Stock Market Sentiment
by Quibit Tue Jul 09, 2024 9:01 am

» LankaBIZ Unveils AI-Driven On-Demand Financial Research and Analysis Service
by Quibit Thu Jul 04, 2024 12:49 pm

» CDB Non voting
by Nandun Sun Jun 30, 2024 9:45 pm

» The Parsi Power Play: How a Small Community of Iranian Parsis are Controling Sri Lanka's US $ 85 billion Economy & 22 Million Population & Politics driving away FDIs
by MalakaDesmond Sun Jun 30, 2024 10:19 am

» Richard Pieris Group: Mismanaged?
by Walbaba Sat Jun 29, 2024 7:04 pm

» සොෆ්ට්ලොජික් හෝල්ඩිංග්ස් පීඑල්සී: අඳුරු අපේක්ෂාවන් සහිත ඉහළ අවදානම් ආයෝජනයක්
by D.G.Dayaratne Tue Jun 25, 2024 5:45 am

» සොෆ්ට්ලොජික් ප්‍රාග්ධනයට වන්දි ගෙවන Share BuyBack නිසා Softlogic ජීවිත රක්‍ෂණය බංකොලොත් වීමේ අවදානමක
by MalakaDesmond Tue Jun 25, 2024 1:49 am

» Softlogic Life insurance face Danger of Bankruptcy due to Share BuyBack that compensate Softlogic Capital
by MalakaDesmond Tue Jun 25, 2024 1:33 am

» Softlogic Holdings PLC: A High-Risk Investment with Bleak Prospects
by MalakaDesmond Tue Jun 25, 2024 12:52 am

» FINANCE AND LEASING SECTOR
by SL-INVESTOR Sat Jun 22, 2024 12:48 am

» HSENID BUSINESS SOLUTIONS PLC (HBS.N0000)
by ErangaDS Wed Jun 19, 2024 9:21 pm

» How will proposed Tax Reforms affect Sri Lankans in 2025
by Quibit Wed Jun 19, 2024 9:27 am

» Falsified accounts and financial misrepresentation at Arpico Insurance PLC (AINS)
by ChooBoy Tue Jun 18, 2024 11:31 pm

» Impact of IMF reforms to Sri Lanka Economy
by D.G.Dayaratne Mon Jun 17, 2024 6:36 pm

» Richard Pieris Finance Ltd continue to endanger the Depositors with negative performance
by ddindika Mon Jun 17, 2024 3:17 pm

» Richard Pieris Exports reports 97% decline in Net Profits
by Biggy Sat Jun 15, 2024 11:26 am

» Do your own Stock Market Research using AI Tools
by Quibit Fri Jun 14, 2024 10:50 am

» What will happen tomorrow?
by cheetah Thu Jun 13, 2024 12:07 pm

» Focus on Government controlled entities
by ErangaDS Mon Jun 10, 2024 4:15 pm

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube


You are not connected. Please login or register

Prices are going up, and CEOs are making out like bandits

Go down  Message [Page 1 of 1]

target1

avatar
Manager - Equity Analytics
Manager - Equity Analytics

https://edition.cnn.com/2022/03/28/business/ceo-pay-inflation-prices/index.html

Prices are going up, and CEOs are making out like bandits Screen81

New York (CNN Business)Inflation is eating into everyone's paycheck — unless you're a CEO.

]Prices are going up just about everywhere, and corporations have been quick to blame those hikes on the cost of doing business, with labor and materials prices going up because of Covid-fueled supply issues and Russia's invasion of Ukraine. And while compensation for American workers 
climbed 4% last year, the biggest increase since 2001, you're paying a lot more for stuff: When adjusted for inflation, wages and salaries actually fell 2.4%.

Meanwhile, CEOs are making out like bandits. In some ways, they've got us to thank for it.

During the first year of the pandemic, CEO pay 
jumped 19% — even as many of their businesses ground to a halt, according to the Economic Policy Institute, a left-leaning think tank.

It's safe to say CEOs are more than keeping up with inflation. Corporate profits have skyrocketed, and demand for goods and services has remained strong even as prices have climbed. Frustration is building, however: Consumer sentiment this month slumped to its lowest level since 2011.

Executive compensation is always top tier, of course, but the difference now is that consumers are having to take it on the chin while the top brass get wealthier and profit margins get fatter.[/size][/size]

Corporations know they can get away with more price hikes, in part because the idea of inflation has settled into shoppers' collective psyche. We expect to pay more, and we keep buying because our paychecks are a bit higher.

But as price increases continue, "I think it'll be startling for people when they learn more about how CEOs are really profiting — and profiteering — off of it," said Sarah Anderson, program director for the Global Economy Project at the Institute for Policy Studies.

It pays to be rich

One oft-cited example is Chipotle, which has raised prices on consumers 10% over the past two years, even as profits have soared.
The chain's CEO, Brian Niccol, made $38 million in 2020 — 2,898 times more than the median store-level employee. (The more typical CEO-to-worker ratio last year was 350 to one.)
Representatives for Chipotle didn't immediately respond to a request for comment, but a spokesperson told Newsweek last year that the compensation package was "based on a competitive analysis of CEO pay levels within our peer group and is designed to pay for performance."
Starbucks has also been called out for hiking prices even as its profits soared more than 30% last year. Outgoing CEO Kevin Johnson also received a nearly 40% boost in compensation, totaling more than $20 million, compared to the year before.

A Starbucks representative sought to distinguish between menu prices and executive pay as "two completely different topics," noting that the latter is determined by the board of directors.

"Our executive compensation program is structured to closely align with our business purpose and commitment to shareholder value creation," the representative said in an emailed statement. As for menu prices: "There are many factors that contribute to our thoughtful pricing strategy, which factors in the increasing inflation rate of 7% as well as wages, customer demand and other costs."

Corporate boards decide executive pay, which is a mix of salary, bonuses and other benefits tied to various financial goals. But these boards are often stacked with executives or former executives from other companies who benefit from the system. Critics of excessive executive pay often note those shareholders are unlikely to rock the boat, especially when profits are soaring.

"Despite all research to the contrary, there's a view that the guy in the corner office is almost single-handedly responsible for the value of the company," Anderson said. "And so you've got to do whatever you can do to keep him happy and make sure he doesn't leave."

Share this post on: reddit

No Comment.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum