$96,000 a Day and the Great Disconnect

InsideCapitolDome

$96,000 a Day and the Great Disconnect

InsideCapitolDome

$96,000 a Day and the Great Disconnect

$96,000 a day.

That’s Nike CEO and president Mark Parker’s compensation, according to the newest list of executive pay at publicly owned companies in Oregon published by the Portland Business Journal on newsstands now (online version article and list only available to subscribers).

Table showing the total compensation of Oregon's highest paid executives. Mark Parker of Nike made more than $35 million in 2011.

While Parker’s $35.2 million in annual compensation tops the list, Nike employees in total hold five of the 10 top slots. Oregon’s other Fortune 500 company, Precision Castparts, holds the number 2 slot and two others in the top 10.

The article notes the disconnect between CEO compensation and workers and the economy:

Many public company executives took pay cuts after the 2008 economic crash. Although sales have bounced back slowly, executive pay has rebounded more quickly. The median sales increase last year for companies represented by the state’s 20 highest-paid executives: 16 percent. The median raise: 24 percent.

“I would dare say the employees didn’t get 24 percent raises,” said Eleanor Bloxham, CEO of Westerville, Ohio-based the Value Alliance, which consults on CEO pay. “What you have is this continuing disconnect between what everybody that contributes to share price gets and what top executives get.”

Income inequality has soared over the past few decades in Oregon, and one of the key drivers of inequality nationally has been the growth of chief executive officer earnings.

Parker’s $96,000 daily compensation was twice the annual compensation of the typical (median) Oregon household ($46,816) in 2011.

I should note that much of his compensation — about $20.5 million in stock — has strings attached: To get the stock Parker has to stay in his job for five years.

The typical Oregonian, of course, is looking for job security and can’t demand a handsome sum to commit to stay in his or her job.

Yes, we live in the age of the Great Disconnect.

 


This blog post was originally posted on www.blueoregon.com on October 9, 2012. The original post can be found at http://www.blueoregon.com/2012/10/96000-dollars-a-day-great-disconnect/.

 

 

OCPP

OCPP

Written by staff at the Oregon Center for Public Policy.
Chuck Sheketoff

Chuck Sheketoff

Chuck Sheketoff is a founder of the Oregon Center for Public Policy and former Executive Director. Incorporated in 1995, the Center was launched with Chuck as its first executive director after Chuck received the "public interest pioneer award" from the Stern Family Fund in September, 1997. Prior to starting the Center, Chuck lobbied the Oregon legislature on tax policies and on human services programs' policies and budgets on behalf of legal aid clients (1992 to 1996) and the low-income clients of the Oregon Law Center (1997).

Action Plan for the People​

How to Build Economic Justice in Oregon

Latest Posts

Your donation helps build Economic Justice in Oregon

Your donation helps build Economic Justice in Oregon

Scroll to Top