Tough love, or “tough luck – bwahahahaha”?

• A study by the Institute for Policy Studies, a Washington think tank, shows that in the 50 companies that laid off the most workers around 2009, CEOs tended to make more money than CEOs of other companies.
• The companies analyzed were diverse in terms of their health in the wake of the recession. Some were doing fine while others were struggling. But all showed the same trend toward higher CEO pay.
• Most of these companies were actually laying off workers during a time of increased profit. Layoffs are usually a short-term solution that companies use to increase profits and stay afloat.

Facts & Figures

• CEOs of high-layoff companies were paid an average of 42% more than their peers – about $12 million
• Of the 50 companies studied, average CEO pay rose by 7% in 2009
• Average pay for CEOs in the Fortune 500 decreased 11% in the same period

Best Quote

“We are trying to encourage people to think long-term, that there are all kinds of costs to mass layoffs, in terms of morale problems with remaining workers, in terms of when you may have to rehire and train workers if conditions improve. It was more a way to boost their profits in the short terms and line the pockets of their CEOs.” – Sarah Anderson, study author and Global Economy Project Director at Institute for Policy Studies

Tags: CEO compensation, layoffs, recession