02 April 2007

Ethics Here in the U.S. Have Gone Nuts

Yesterday, while my husband and I were at Target, where I bought our cats a couple really adorable decorative collars, my husband told me that Circuit City was laying off thousands of workers just because they get too much money. They are getting layed off, then they can reapply for their job after 10 weeks at a discounted hourly rate. So I looked the story up and here it is on Yahoo news:

Circuit City to cut more than 3,500 jobs

Now, here is the part of the story that really gets to me:
The news of the layoffs came as a surprise to Rachelle Gouled, who earned
about $7.75 an hour working on the sales floor at a Circuit City in Roseville,

$7.75 and hour, and Congress has been talking about raising the minimum wage, and there was concern for small businesses...Circuit City is not a small business. Obviously, it is the large Corporation that does not want the minimum wage to become a living wage, as evidence here.
$7.75 times 40 hours a week is only $310.00 a week. And that is gross. Take out federal, state, local, occupation privilege taxes and the employee takes home less than $300.00 a week. Now, there are 52 weeks in a year. $310.00 times 52 weeks is only $16,120.00 gross yearly pay if they work a full 40 hours every week in the year without a vacation.

And this is too much money for a corporation to pay a hard-working deserving employee?

Yet, CEOs who work only 10 months and are fired for incompetence receive a parting gift of $25 million dollars. Now where is the logic?

Fortune magazine says this:


Voters are outraged. Big investors are
demanding change. Even some CEOs admit there's a crisis. But rewards that defy all economic logic don't simply spring from greed. Corporate America's executive-compensation system is broken.

A look at CEO earnings (for 1 year)

  • Lee Raymond
    $405 Million
    That's the 2005 comp, lump-sum pension, and current value of various stock grants with which Exxon's chief rides into retirement.

  • Bob Nardelli
    $250 Million
    The total value of the package Home Depot has paid him so far. He's collected about 30%. The rest varies with the stock price.

  • William McGuire
    $1 Billion
    UnitedHealth's CEO holds a ton of options. Alleged accounting flaws have hit the stock. But his potential reward (above) remains rich.

  • Hank McKinnell
    $99 Million
    Pfizer's CEO took heat for a hefty pension built up over many years (present value: $83 million). He earned $16 million in 2005.

  • Franklin Raines
    $90 Million
    Fannie Mae's boss made that from 1998 to 2003. But auditors now say the earnings his comp was based on were overstated by $11 billion.

  • Phil Purcell
    $66 Million

So how is it an executive can make millions when they obvioulsy do not perform their jobs well, yet people who do perform their jobs well who make less than 20 thousand dollars a year get fired for making too much money?

Yet, look at our vice-president. He is associated with Halliburtion, which is making billions of dollars from our tax money to help line the Vice-President's pockets with millions of dollars...so much that last year, our vice-president received a 1.2 million dollar tax refund.

So obviously, while our politicians are lining their personal pockets with the tragedy that has befallen the U.S., can we really expect change before we vote the greedy, self-serving S.O.B.s out of office?

The insanity needs to stop!

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