The Institute for Policy Studies (IPS) earlier this month released its second annual report on the CEO-worker retirement benefit gap. A Tale of Two Retirements analyzes how CEOs are provided with colossal nest eggs– monthly retirement checks ranging from more than $100,000 to more than $1,000,000– while at the same time many of their companies pursue strategies that erode retirement security for their employees.
The CEO-worker retirement benefit gap has become such a chasm, not as the result of executives working harder or investing more wisely, but as “yet one more example of rule-rigging in favor of the 1%,” according to the IPS.
Benefits Go Disproportionately to Those at the Top
As an aside, I should mention another item in yesterday’s news: the phenomenon that the IPS report discusses is not just confined to the US, nor is it limited solely to CEO retirement benefits. The Financial Times reported in ‘Negligible’ link found between executive pay and performance on a similar disconnect in Britain, this documented in a Lancaster University Management School study. From the pink paper:
– Naked Capitalism