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Corporate Distribution Of Profits To Wealthy CEO's Needs To Stop
Apr 7, 2021 16:23:46   #
woodguru
 
I have long talked about the way the stock market is geared to stripping off the wealth investors are creating when they fund the growth of corporations. The only return investers get is if they sell their stock when it has grown, but there is no protection for what they have built long term when stock prices go down...the people who have stripped off wealth keep it while those who keep their funds in the company lose theirs while having paid non contributors the fruits of their investments...

But this is about a more direct problem with how profits are disbursed to CEO's and board members in the form of bonuses. Bonuses have become such a common or standard thing that the meaning of what a bonus is or should be has been entirely lost. A bonus to my way of thinking is a reward for outstanding performance, not a contracted part of pay and compensation. In this day and age bonuses of hundreds of millions of dollars are paid out under circumstances that should be fiscally irresponsible and illegal. Corporations have paid out hundreds of millions in bonuses even as as they laid off tens of thousands of workers. Companies that are in trouble can take years of austerity measures to help the company survive, yet companies that are obviously in trouble will continue to pay CEO's tens of millions in bonuses.

Any company that is in trouble has absolutely no business paying out any bonus to anyone in the company. Bonuses are just that, a bonus on top of the contracted salary. A contracted bonus is not a bonus, it is part of the salary contract, and the reason there is this distinction is because a bonus for some ridiculous reason is taxed at a lower rate than salary is. A bonus that is a contracted part of a pay package is pay...not that there is any reason to tax a bonus at any different rate than salary.

Serious oversight and regulation as to what a bonus is would have serious affects on corporate finances and how it applies to it's tax structure. These hundreds of billions of dollars that currently evade and avoid taxes would generate substantial revenue for the government. Not only that, but the company would be using profits in an entirely different way if these funds were no longer tax exempt. Corporations would find themselves with substantial revenues that would be better spent in other ways, such as dividends to investors or reinvested in equipment and R&D that would result in higher future revenues...

Then legislation would make sense that any corporation that is doing so well that it can give bonuses of hundreds of millions of dollars to CEO's should be forced to give half of bonus funds to the employees that actually make the company the money in the first place, to be split equably according to earnings.

Corporations would do better without a contracted bonus drain that goes out in hard times, the government would generate hundreds of millions in tax revenues if they were taxed at income levels, and millions of employees would do better.

Apr 7, 2021 17:04:55   #
Milosia2 Loc: Cleveland Ohio
 
woodguru wrote:
I have long talked about the way the stock market is geared to stripping off the wealth investors are creating when they fund the growth of corporations. The only return investers get is if they sell their stock when it has grown, but there is no protection for what they have built long term when stock prices go down...the people who have stripped off wealth keep it while those who keep their funds in the company lose theirs while having paid non contributors the fruits of their investments...

But this is about a more direct problem with how profits are disbursed to CEO's and board members in the form of bonuses. Bonuses have become such a common or standard thing that the meaning of what a bonus is or should be has been entirely lost. A bonus to my way of thinking is a reward for outstanding performance, not a contracted part of pay and compensation. In this day and age bonuses of hundreds of millions of dollars are paid out under circumstances that should be fiscally irresponsible and illegal. Corporations have paid out hundreds of millions in bonuses even as as they laid off tens of thousands of workers. Companies that are in trouble can take years of austerity measures to help the company survive, yet companies that are obviously in trouble will continue to pay CEO's tens of millions in bonuses.

Any company that is in trouble has absolutely no business paying out any bonus to anyone in the company. Bonuses are just that, a bonus on top of the contracted salary. A contracted bonus is not a bonus, it is part of the salary contract, and the reason there is this distinction is because a bonus for some ridiculous reason is taxed at a lower rate than salary is. A bonus that is a contracted part of a pay package is pay...not that there is any reason to tax a bonus at any different rate than salary.

Serious oversight and regulation as to what a bonus is would have serious affects on corporate finances and how it applies to it's tax structure. These hundreds of billions of dollars that currently evade and avoid taxes would generate substantial revenue for the government. Not only that, but the company would be using profits in an entirely different way if these funds were no longer tax exempt. Corporations would find themselves with substantial revenues that would be better spent in other ways, such as dividends to investors or reinvested in equipment and R&D that would result in higher future revenues...

Then legislation would make sense that any corporation that is doing so well that it can give bonuses of hundreds of millions of dollars to CEO's should be forced to give half of bonus funds to the employees that actually make the company the money in the first place, to be split equably according to earnings.

Corporations would do better without a contracted bonus drain that goes out in hard times, the government would generate hundreds of millions in tax revenues if they were taxed at income levels, and millions of employees would do better.
I have long talked about the way the stock market ... (show quote)



Great post

It was Reagan who lifted the cap off of CEO pay that at one time was 300 times what the workers made.
Now there is no limit.
When you couple this with Reagan ditching the Sherman Anti Trust Act you have a recipe for disaster. For Us not them.
The Sherman anti trust act was not allowing corporations to become too big to fail. So today you have no limit on corporate size paired with no limit to CEO pay. What could go wrong there ?

Apr 7, 2021 17:16:24   #
Wolf counselor Loc: Heart of Texas
 
woodguru wrote:
I have long talked about the way the stock market is geared to stripping off the wealth investors are creating when they fund the growth of corporations. The only return investers get is if they sell their stock when it has grown, but there is no protection for what they have built long term when stock prices go down...the people who have stripped off wealth keep it while those who keep their funds in the company lose theirs while having paid non contributors the fruits of their investments...

But this is about a more direct problem with how profits are disbursed to CEO's and board members in the form of bonuses. Bonuses have become such a common or standard thing that the meaning of what a bonus is or should be has been entirely lost. A bonus to my way of thinking is a reward for outstanding performance, not a contracted part of pay and compensation. In this day and age bonuses of hundreds of millions of dollars are paid out under circumstances that should be fiscally irresponsible and illegal. Corporations have paid out hundreds of millions in bonuses even as as they laid off tens of thousands of workers. Companies that are in trouble can take years of austerity measures to help the company survive, yet companies that are obviously in trouble will continue to pay CEO's tens of millions in bonuses.

Any company that is in trouble has absolutely no business paying out any bonus to anyone in the company. Bonuses are just that, a bonus on top of the contracted salary. A contracted bonus is not a bonus, it is part of the salary contract, and the reason there is this distinction is because a bonus for some ridiculous reason is taxed at a lower rate than salary is. A bonus that is a contracted part of a pay package is pay...not that there is any reason to tax a bonus at any different rate than salary.

Serious oversight and regulation as to what a bonus is would have serious affects on corporate finances and how it applies to it's tax structure. These hundreds of billions of dollars that currently evade and avoid taxes would generate substantial revenue for the government. Not only that, but the company would be using profits in an entirely different way if these funds were no longer tax exempt. Corporations would find themselves with substantial revenues that would be better spent in other ways, such as dividends to investors or reinvested in equipment and R&D that would result in higher future revenues...

Then legislation would make sense that any corporation that is doing so well that it can give bonuses of hundreds of millions of dollars to CEO's should be forced to give half of bonus funds to the employees that actually make the company the money in the first place, to be split equably according to earnings.

Corporations would do better without a contracted bonus drain that goes out in hard times, the government would generate hundreds of millions in tax revenues if they were taxed at income levels, and millions of employees would do better.
I have long talked about the way the stock market ... (show quote)


Why the hell should 'you' be concerned ?

You're just a miseducated, broke ass member of the underclass.

Never envy the rich...........Goober.

And accept that you will always be poor.

 
 
Apr 7, 2021 17:59:50   #
LogicallyRight Loc: Chicago
 
woodguru wrote:
I have long talked about the way the stock market is geared to stripping off the wealth investors are creating when they fund the growth of corporations. The only return investers get is if they sell their stock when it has grown, but there is no protection for what they have built long term when stock prices go down...the people who have stripped off wealth keep it while those who keep their funds in the company lose theirs while having paid non contributors the fruits of their investments...

But this is about a more direct problem with how profits are disbursed to CEO's and board members in the form of bonuses. Bonuses have become such a common or standard thing that the meaning of what a bonus is or should be has been entirely lost. A bonus to my way of thinking is a reward for outstanding performance, not a contracted part of pay and compensation. In this day and age bonuses of hundreds of millions of dollars are paid out under circumstances that should be fiscally irresponsible and illegal. Corporations have paid out hundreds of millions in bonuses even as as they laid off tens of thousands of workers. Companies that are in trouble can take years of austerity measures to help the company survive, yet companies that are obviously in trouble will continue to pay CEO's tens of millions in bonuses.

Any company that is in trouble has absolutely no business paying out any bonus to anyone in the company. Bonuses are just that, a bonus on top of the contracted salary. A contracted bonus is not a bonus, it is part of the salary contract, and the reason there is this distinction is because a bonus for some ridiculous reason is taxed at a lower rate than salary is. A bonus that is a contracted part of a pay package is pay...not that there is any reason to tax a bonus at any different rate than salary.

Serious oversight and regulation as to what a bonus is would have serious affects on corporate finances and how it applies to it's tax structure. These hundreds of billions of dollars that currently evade and avoid taxes would generate substantial revenue for the government. Not only that, but the company would be using profits in an entirely different way if these funds were no longer tax exempt. Corporations would find themselves with substantial revenues that would be better spent in other ways, such as dividends to investors or reinvested in equipment and R&D that would result in higher future revenues...

Then legislation would make sense that any corporation that is doing so well that it can give bonuses of hundreds of millions of dollars to CEO's should be forced to give half of bonus funds to the employees that actually make the company the money in the first place, to be split equably according to earnings.

Corporations would do better without a contracted bonus drain that goes out in hard times, the government would generate hundreds of millions in tax revenues if they were taxed at income levels, and millions of employees would do better.
I have long talked about the way the stock market ... (show quote)


You actually make some interesting points for once. If a CEO making $5 million gets a $10 million bonus, shouldn't an employee making $50 thousand get a $100 thousand bonus. Proportional. Hmmm. And if I own $50 thousand in stock, shouldn't I get $100 thousand dividend. Proportional. Hmmm

Apr 7, 2021 18:32:47   #
Weewillynobeerspilly Loc: North central Texas
 
woodguru wrote:
I have long talked about the way the stock market is geared to stripping off the wealth investors are creating when they fund the growth of corporations. The only return investers get is if they sell their stock when it has grown, but there is no protection for what they have built long term when stock prices go down...the people who have stripped off wealth keep it while those who keep their funds in the company lose theirs while having paid non contributors the fruits of their investments...

But this is about a more direct problem with how profits are disbursed to CEO's and board members in the form of bonuses. Bonuses have become such a common or standard thing that the meaning of what a bonus is or should be has been entirely lost. A bonus to my way of thinking is a reward for outstanding performance, not a contracted part of pay and compensation. In this day and age bonuses of hundreds of millions of dollars are paid out under circumstances that should be fiscally irresponsible and illegal. Corporations have paid out hundreds of millions in bonuses even as as they laid off tens of thousands of workers. Companies that are in trouble can take years of austerity measures to help the company survive, yet companies that are obviously in trouble will continue to pay CEO's tens of millions in bonuses.

Any company that is in trouble has absolutely no business paying out any bonus to anyone in the company. Bonuses are just that, a bonus on top of the contracted salary. A contracted bonus is not a bonus, it is part of the salary contract, and the reason there is this distinction is because a bonus for some ridiculous reason is taxed at a lower rate than salary is. A bonus that is a contracted part of a pay package is pay...not that there is any reason to tax a bonus at any different rate than salary.

Serious oversight and regulation as to what a bonus is would have serious affects on corporate finances and how it applies to it's tax structure. These hundreds of billions of dollars that currently evade and avoid taxes would generate substantial revenue for the government. Not only that, but the company would be using profits in an entirely different way if these funds were no longer tax exempt. Corporations would find themselves with substantial revenues that would be better spent in other ways, such as dividends to investors or reinvested in equipment and R&D that would result in higher future revenues...

Then legislation would make sense that any corporation that is doing so well that it can give bonuses of hundreds of millions of dollars to CEO's should be forced to give half of bonus funds to the employees that actually make the company the money in the first place, to be split equably according to earnings.

Corporations would do better without a contracted bonus drain that goes out in hard times, the government would generate hundreds of millions in tax revenues if they were taxed at income levels, and millions of employees would do better.
I have long talked about the way the stock market ... (show quote)



Well..... there goes any green deal, and the teachers union.....

Oversight is a must, just not your kind of oversight......... or the folks you would approve of doing the overseeing, you cannot be trusted with anything like that.

Corporate misgivings are embedded in your party, nobody is following the words anymore..... we're watching the shifty hands of you and those you support.

Other than that...... may the mesquite already be split, and the fishing be good........ because you know the gravy has to be hot.

Good day.

Apr 7, 2021 18:41:38   #
Weewillynobeerspilly Loc: North central Texas
 
Milosia2 wrote:
Great post

It was Reagan who lifted the cap off of CEO pay that at one time was 300 times what the workers made.
Now there is no limit.
When you couple this with Reagan ditching the Sherman Anti Trust Act you have a recipe for disaster. For Us not them.
The Sherman anti trust act was not allowing corporations to become too big to fail. So today you have no limit on corporate size paired with no limit to CEO pay. What could go wrong there ?
Great post br img src="https://static.onepoliti... (show quote)



Stop that nonsense. ... if you compare apple to apple ya might have something, but the one apple has but one job, the orange confused as an apple has many, if not thousands of employees that he pays..... and that includes the apple, so the orange pay should be exponentially higher...... how that boss thing works. Have you ever had a job?

Big corporations work in your favor, why are you griping about it? For now they cowtow down to the weird fringy insanity that you would foist upon America...... eventually you will eat them also, but for now you will use them.

What else ya got?

Apr 7, 2021 19:00:30   #
JFlorio Loc: Seminole Florida
 
LogicallyRight wrote:
You actually make some interesting points for once. If a CEO making $5 million gets a $10 million bonus, shouldn't an employee making $50 thousand get a $100 thousand bonus. Proportional. Hmmm. And if I own $50 thousand in stock, shouldn't I get $100 thousand dividend. Proportional. Hmmm


The bonus system has long been unfair. However; shareholders get to vote on much that goes on in the corporation. They can vote that CEO out. Depending on the bylaws they may vote on the bonus. Corporations also often pay dividends to shareholders. Most shareholders don’t even vote.

 
 
Apr 7, 2021 19:02:23   #
JFlorio Loc: Seminole Florida
 
Weewillynobeerspilly wrote:
Stop that nonsense. ... if you compare apple to apple ya might have something, but the one apple has but one job, the orange confused as an apple has many, if not thousands of employees that he pays..... and that includes the apple, so the orange pay should be exponentially higher...... how that boss thing works. Have you ever had a job?

Big corporations work in your favor, why are you griping about it? For now they cowtow down to the weird fringy insanity that you would foist upon America...... eventually you will eat them also, but for now you will use them.

What else ya got?
Stop that nonsense. ... if you compare apple to ap... (show quote)


Progressives are too stupid to realize the majority of taxes on business are either passed on to consumers or result in less employment.

Apr 7, 2021 23:35:20   #
Milosia2 Loc: Cleveland Ohio
 
Weewillynobeerspilly wrote:
Stop that nonsense. ... if you compare apple to apple ya might have something, but the one apple has but one job, the orange confused as an apple has many, if not thousands of employees that he pays..... and that includes the apple, so the orange pay should be exponentially higher...... how that boss thing works. Have you ever had a job?

Big corporations work in your favor, why are you griping about it? For now they cowtow down to the weird fringy insanity that you would foist upon America...... eventually you will eat them also, but for now you will use them.

What else ya got?
Stop that nonsense. ... if you compare apple to ap... (show quote)

Big corporations do not “work” in your favor. You are nothing but a hindrance to them making more money. They don’t care about you and would rather have robots. Work in your favor?????
This is going to take longer than we thought.
Why are you so willing to give away your country to the corporations? They don’t care about your country. Or only the part that writes them checks.
They hate your government, they hate regulations, basically they hate everything that isn’t profit. Profit at any cost, profit at all costs.
It’s mind over matter
They don’t mind
And you don’t matter !
Sweet gullible Ewes !!!!
They couldn’t do it without you !
But by all means feel free to blame the Dems just as they’ve told you to do !

Apr 7, 2021 23:39:07   #
Milosia2 Loc: Cleveland Ohio
 
JFlorio wrote:
Progressives are too stupid to realize the majority of taxes on business are either passed on to consumers or result in less employment.


The majority of taxes ????
They don’t pay any taxes.

Apr 7, 2021 23:59:43   #
JFlorio Loc: Seminole Florida
 
Milosia2 wrote:
The majority of taxes ????
They don’t pay any taxes.


As usual you are incorrect. Love to hear your version of what's fair. Do you prefer an economy run by Oligarchs, Socialists, Communists, or Capitalists. If you can't answer this question and give good reasons why, you need to STFU and quit discussing topics that make you look foolish.

 
 
Apr 8, 2021 00:00:33   #
JFlorio Loc: Seminole Florida
 
Milosia2 wrote:
The majority of taxes ????
They don’t pay any taxes.


Really? I have two business's and I pay way more tax than I want to.

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