{"insight":{"id":"121542932","lede":"-","slug":"between-1940-and-1970-average-ceo-pay-remained-below-1-million-in-2000-dollars","title":"Between 1940 and 1970, average CEO pay remained below $1 million (in 2000 dollars).","showTitleAsQuote":false,"epistemicStatus":"fact","reports":[{"id":"69359365","title":"Codetermination","slug":"codetermination"}],"tags":[{"slug":"executive-compensation","name":"Executive Compensation","id":"121525247","lede":"

Executive compensation refers to the payments – both financial and otherwise – executives receive for their services. Executive compensation is generally a mix of salary, performance-based bonuses (which may be in cash, shares, or call options), and benefits.

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Since the 1980's, executive compensation in the US has soared relative to workers' wages. CEO-to-worker compensation increased frmo 20-to-1 in 1965 to 278-to-1 in 2018. From 1978 - 2018, CEO compensation increased by 940% while average worker wages grew only 11.9%.

\n","ledeExcerpt":"Executive compensation refers to the payments – both financial and otherwise – executives receive for their services. Executive compensation is generally a mix of salary, performance-based bonuses (which may be in cash, shares, or call options), and benefits.\n\nSince the 1980's, executive compensation in the US has soared relative to workers' wages. CEO-to-worker compensation increased from 20-to-1 in 1965 to 278-to-1 in 2018. From 1978 - 2018, CEO compensation increased by 940% while average worker wages grew only 11.9%.","featured":null},{"slug":"corporate-governance","name":"Corporate Governance","id":"69359562","lede":"

Corporate governance describes "the processes, structures, and mechanisms that influence the control and direction of corporations" (Greg Shailer, 2018).

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"Control" refers to how stakeholders and other external groups influence those who are responsible for decision-making, while "direction" refers to the guidance and management of the corporation.

\n","ledeExcerpt":"Corporate governance describes \"the processes, structures, and mechanisms that influence the control and direction of corporations\" (Greg Shailer, 2018).\n\n\"Control\" refers to how stakeholders and other external groups influence those who are responsible for decision-making, while \"direction\" refers to the guidance and management of the corporation.","featured":null},{"slug":"stability","name":"Stability","id":"23916385","lede":"

We define stability as the resiliency, robustness, and constancy of our nested social, financial, and environmental systems. Stability is the degree to which our systems can withstand stress and maintain their functionality over time.

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Why do we need stability? All else equal, a stable society is preferable to an unstable society. Stability - the product of the harmonious interaction between parts, or interwoven systems - protects against uncertainty and decay. For example, a healthy body regulates its blood glucose levels to provide cells with their required energy. Too much glucose makes cells sticky, with a paralyzing effect. Too little glucose starves them. What's important is the constancy of glucose regulation within functional limits, and the resiliency to maintain this regulation amidst adversity.

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Instability occurs when systems transgress functional limits, causing the breakdown of other systems and suffering for those who depend on them. When interlocking systems remain stable, they provide a fertile foundation for positive expectations that fuel investments in progress and broad cooperation throughout society.

\n","ledeExcerpt":"We define stability as the resiliency, robustness, and constancy of our nested social, financial, and environmental systems. Stability is the degree to which our systems can withstand stress and maintain their functionality over time. \n\nWhy do we need stability? All else equal, a stable society is preferable to an unstable society. Stability - the product of the harmonious interaction between parts, or interwoven systems - protects against uncertainty and decay. For example, a healthy body regulates its blood glucose levels to provide cells with their required energy. Too much glucose makes cells sticky, with a paralyzing effect. Too little glucose starves them. What's important is the constancy of glucose regulation within functional limits, and the resiliency to maintain this regulation amidst adversity.\n\nInstability occurs when systems transgress functional limits, causing the breakdown of other systems and suffering for those who depend on them. When interlocking systems remain stable, they provide a fertile foundation for positive expectations that fuel investments in progress and broad cooperation throughout society.","featured":true}],"sources":[{"id":"121542874","lede":"\"Fighting Short-Termism With Worker Power asks, “Can Germany’s co-determination system fix American corporate governance?” Prioritizing immediate increases in share price and payouts at the expense of long-term business investment and growth—a behavior we refer to as short-termism—has driven the inequality crisis in America and weakened our economy. By comparing the German stakeholder system of co-determination to corporate governance in the U.S., we find that emboldening workers with legitimate stakeholder power can help hold back the forces of short-termism.\"","link":"https://rooseveltinstitute.org/publications/fighting-short-termism-with-worker-power/","slug":"fighting-short-termism-with-worker-power-roosevelt-institute","kind":"Report","title":"Fighting Short-Termism with Worker Power","year":"2017-01-01","researchers":[{"id":"121542873","location":"Senior Editor and Researcher with the Institute for Local Self-Reliance’s Independent Business Initiative","name":"Susan Holmberg","seoDescription":"","slug":"susan-holmberg"}]}]}}