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Capitalism. The absolute worst side - and the detrimental effect

Two pieces on CommonDreams, coincidentally on the same day, address a topic which ought to concern everyone.   First, there is the greed and outrageous "pay packets" of CEO's of large corporations and how that compares to the income of their employees.   And second, there is the negative effect of Foundations, like that of Bill Gates and his wife, are having on society.

"As the New Year gets underway, the highest-paid CEOs of many large corporations have already paid themselves more than the average worker will earn in the entire year! By the end of the first week of January, the highest-paid CEOs had already made as much as their average workers will earn over 8 years.

An analysis by Equilar, a consulting firm specializing in executive pay, found that on average, the 200 highest-paid CEOs make approximately $22.6 million a year, or almost $10,800 an hour, a 9.1% increase from the previous year. Meanwhile, the Census Bureau reports the average household earns approximately $53,000 a year.

Over the past fifty years, the pay gap between many highly-paid CEOs and their employees has increased dramatically. In 1965, when they also liked to be rich, CEOs made approximately twenty times as much as their average employee, meaning they would earn their workers’ average pay by the third week of January, and since the 1980s, the average difference and greed have increased. Highly-paid CEOs now make 303 times as much as their employees in a year, according to a study by the Economic Policy Institute.

Equilar notes that Discovery Communications CEO David Zaslav makes $156.1 million a year ($74,796.36 an hour), or approximately 1,951 times as much as his average employee. Doug McMillan, the CEO of Wal-Mart takes in $25.6 million ($12,266.41 an hour), 1,133 times as much as the average experienced store associate, who earns roughly $22,000. Other highly-paid CEOs include Larry Merlo, the CEO of CVS Caremark, who makes 422 times as much as CVS employee, meaning that he earns an average worker’s yearly pay by 1 PM on his first work day of the new year; and Goodyear CEO Richard Kramer, who pulls in as much as an average Goodyear employee’s yearly pay by 3:00 PM on January 1st.

Shareholders, the owners of those companies, do not have binding power to determine the pay of their hired help—the company bosses. The wined-and-dined selected boards of directors regularly rubber stamp massive CEO pay raises."


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 From Warren Buffett to Bill Gates, it is no secret that the ultra-rich philanthropist class has an over-sized influence in shaping global politics and policies.

And a study (pdf) just out from the Global Policy Forum, an international watchdog group, makes the case that powerful philanthropic foundations—under the control of wealthy individuals—are actively undermining governments and inappropriately setting the agenda for international bodies like the United Nations.

The top 27 largest foundations together possess assets of over $360 billion, notes the study, authored by Jens Martens and Karolin Seitz. Nineteen of those foundations are based in the United States and, across the board, they are expanding their influence over the global south. And in so doing, they are undermining democracy and local sovereignty.

Notably, foundation spending on global development is skyrocketing, jumping from $3 billion per year over a decade ago to $10 billion today. The Bill and Melinda Gates Foundation leads the way, giving $2.6 billion in 2012, the report notes. In addition, the Gates Foundation is the largest non-state funder of the World Health Organization.














 

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