Commentary

More trickledown pay raises for top one percenters at UNC

UNCLogoThere they go again. A few months after the UNC Board of Governors dropped some big cash on system chancellors, UNC Chapel Hill trustees have bestowed big, retroactive raises on an array of already extremely well-paid administrators. This is, of course, at a time when other North Carolina public employees of more modest stature are mostly doing without.

As Jane Stancill of Raleigh’s News & Observer reports this morning:

“UNC-Chapel Hill’s athletic director, Bubba Cunningham, recently received a 10 percent raise, bringing his annual pay to $642,268.

The $58,388 increase for Cunningham was the largest among those approved for nine high-ranking university administrators, who got raises or bonuses ranging from 1 percent to 10 percent.

The increases were part of the annual raise process, according to a university spokesman who said new salary levels were retroactive to July 1, 2015. Trustees initially approved the increases in a December mail ballot, which was ratified last week. The vote last week was unanimous.”

The article goes on to report that the trustees hope to “make adjustments in faculty pay” as well, but as always seems to be the case, that will come after the folks at the top are taken care of. No word about adjunct instructors, food service workers, janitors, etc….

Of course, it seems likely that the conservative leaders in state government will be all in with this approach. After all, they always talk about wanting to “run government like a business” and what could be more business-like in modern America than bestowing big raises on the bosses first and leaving the crumbs for everyone else?

(As an aside, it’s also worth noting that all of the folks receiving raises have received extremely large state income tax cuts in recent years thanks to the the shortsighted policies at work in Raleigh).

Click here to read the rest of Stancil’s story ans see the full list of raises.

Commentary

The rich get richer: Public utility CEO gets $14.4 million “severance”

Another day in the absurdly unequal American economy, another one percenter (this time, the boss of a regulated “public” utility) getting paid to do nothing. The Charlotte Observer has the latest such story:

“Piedmont Natural Gas Chief Executive Officer Tom Skains will receive nearly $14.4 million in severance pay when Duke Energy completes its purchase of the Charlotte-based gas company.

The $4.9 billion acquisition, which was announced in late October, is expected to close in late 2016. Both Piedmont and Duke have said Skains’ decision to retire was his own.

Skains’ severance package includes over $5 million in cash, $8.6 million of equity and a bonus of $749,297, according to a securities filing this week….

Skains is the only Piedmont executive who has made public his plans to leave the company when the deal closes, making him the only one at this time eligible for the severance benefits.”

Skains’ big score calls to mind the great Calvin Trillin and the poem he authored for The Nation magazine a few years back:

The Best Thing You Can Be Is CEO

The best thing you can be is CEO.
No matter what, you always get your dough.
However many people out of work,
You still get every single little perk.
If fired, you are properly consoled,
By floating ‘neath a parachute of gold.
The best thing you can be is CEO.
No matter what, you always get your dough.

Commentary

The kind of simple legislation Congress ought to be passing

Rep. Barbara Lee

Rep. Barbara Lee (Photo: Inequality.org)

We’re now a decade and a half into the 21st Century and the notion that our nation’s runaway inequality is going to get any better anytime soon via the “genius of the market” has been shown to be utter nonsense. To the contrary, the incomes of the nation’s ruling class continue to skyrocket at such an astounding rate that the idea of the U.S. as a “middle class society” has come to seem quaint.

Meanwhile, the New York Times reports that congressional Republicans can’t get their act together to do much of anything.

Of course, it doesn’t have to be this way. If a majority of the members of Congress possessed a modicum of courage and common sense, they’d be rushing through this bill as soon as possible.

As Congresswoman Barbara S. Lee of California explained here about the Income Equity Act of 2015 that she introduced last week:

“Few realize that CEO bonuses and ‘performance pay’ are subsidized by the American people. Corporations are given major tax breaks for providing exorbitant compensation.

Surely we can agree that corporations don’t need taxpayers to subsidize massive CEO pay?—?pay that’s grown nearly 1000 percent since 1978.

In America, corporations and executives are playing with a deck stacked against hardworking families.

And the Republican response to this profound income inequality has been a collective yawn.

It’s wrong for any business to keep workers in poverty while padding CEO’s wallets.

It’s even worse that some of these same businesses take huge tax deductions for millions in bonuses.

Clearly, our tax code is not designed to work for all Americans?—?just the select few.

My bill, the Income Equity Act, prohibits employers from taking tax deductions for excessive compensation—defined as any pay more than 25 times that of the company’s median wage worker or $500,000.

Congress should get to work for hardworking families, not millionaires and billionaires that want to get even richer on the backs of taxpayers.”

Amen, Congresswoman.

Commentary

Candidates in today’s election must either be for this or have a commitment to ending it

The maddening data on wealth inequality in America have now gotten so ridiculously out of hand that the headline for this post really does sum up what ought to be the single, defining issue in today’s election. For confirmation, check out the following amazing graphic from the good people at Inequality.org.

Wealth inequality