As reported by USA Today, Bank of America announced last week that CEO Brian Moynihan was given an 89% total compensation hike in 2013, from $7.4 million to $14 million. Bloomberg News quoted Jeanne Branthover, managing director at Boyden Global Executive Search, regarding the increase.
"They felt justified giving him a raise because the bank's performance improved, but they didn't give him an outrageous raise. They're also looking at how the outside world views this, and so they were relatively conservative."
The New York Daily News reported that Miguel Cabrera, the 31-year-old first baseman with the Detroit Tigers, agreed to a contract extension. He is now signed for a total of 10 years. His new contract will pay him a total of $292 million. Torii Hunter, Cabrera's teammate, was quoted in a story in The Detroit Free Press.
"The young guys coming up in the organization should see how loyal the Tigers are to their players. This organization is A-1."
Also in baseball, the Los Angeles Angels announced the signing of a contract extension with 22-year-old outfielder Mike Trout for an additional 6 years at $144.5 million, according to the Tampa Bay Times. The San Jose Mercury News printed this quote from Angels' Manager Mike Scioscia.
"I think everybody is obviously thrilled that it got done. He's a special player and a special person."
In his 2014 State of the Union address President Barack Obama announced he wanted to raise the Federal minimum wage for American workers to $10.10 an hour. FOX News later quoted Bob Funk the CEO of Express Employment Professionals. His company recently published a survey of 1,213 business and human resource professionals.
"...based on this survey, there's no denying that raising the minimum wage will result in layoffs, reduced hiring, and higher prices at a large chunk of American companies."
Really! Why?
If American business is so fragile that a $2.85 per hour wage increase will force businesses to layoff or fire employees, then how can they afford to pay CEO's like Moynihan 89% more than they paid him last year? The bank CEO has an Ivy League education, but does that equate to such a year-to-year increase?
Cabrera and Trout both can hit baseballs, seemingly at will, but does that translate to salaries of more than $24+ million per year each?
And, why do these pay raises draw praise, while the mere request for a $2.85 an hour increase draws condemnation?
The Social Security Administration estimates the average American's wage was $42,498.21 in 2012. The U.S. minimum hourly wage, according to the Department of Labor, has been $7.25 per hour since 2009.
Cabrera will be paid an average of $180,246.91 for every game the Detroit Tigers play the next ten years, whether he is penciled into the lineup or not; Trout, under the same obligation regarding appearances, will take home $148,662.55 for each game the Angels play during his contract tenure.
Unlike the over-compensated employees mentioned earlier, those earning the minimum hourly wage, or the average American salary, actually have to show up for work every day, rain or shine, and provide labor during their 8-hour or more shifts...every...single...day.
Priorities regarding fair wages? Maybe we should step back and think about ours.
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