more on Offshoring helps the economy... if you're a CEO who offshores.

[David Farber <dave () farber net>]

Begin forwarded message:

From: John Lyon <jelyon () mac com>
Date: September 1, 2004 12:22:48 PM EDT
To: dave () farber net
Subject: Re: [IP] more on Offshoring helps the economy... if you're a 
CEO who offshores.

A more nuanced look From Market Place, a public radio show:

August 31, 2004 Tuesday
New study suggests CEOs who send jobs abroad more likely to be rewarded 
with big pay raises

This is MARKETPLACE. I'm David Brown.

What could make the issue of outsourcing American jobs even more 
politically explosive? See what you think of this. A just-released 
study from a non-profit, liberal research group suggests chief 
executives who send jobs abroad are more likely to be rewarded with big 
pay raises. Skeptics might challenge the suggestion that there's a 
direct cause-and-effect relationship between outsourcing and rising CEO 
salaries. In fact, the relationship may be more nuanced. MARKETPLACE's 
Bob Moon takes a look.

BOB MOON reporting:

The study found that chief executives whose companies shipped jobs 
overseas enjoyed raises averaging 46 percent, more than five times that 
of the average CEO. The study's author concedes there may or may not be 
a cause-and-effect link between outsourcing jobs and big CEO pay 
raises. Some of the companies in question are, after all, unusually 
large and/or profitable. But Sara Anderson at the Institute for Policy 
Studies argues it's still unseemly for CEOs to be cutting back on jobs 
while their paychecks are getting obscenely fat.

Ms. SARA ANDERSON (Institute for Policy Studies): We do think it's a 
sign of, really, a perverse rewards system in this country, where 
executives generally are rewarded for decisions that may improve the 
bottom line regardless of how might they affect workers and 
communities.

MOON: New York University business Professor Lawrence White isn't 
convinced outsourcing has anything to do with executive pay. He says if 
a CEO can make his firm more efficient, he ought to be rewarded for 
that. And he worries this study just confuses the issue. He says an 
executive's pay often has little to do with his or her accomplishments.

Professor LAWRENCE WHITE (New York University): Generally executives in 
the United States are overpaid, and they are not adequately rewarded 
for better performance; they are not adequately penalized for poor 
performance. That's the real problem.

MOON: But the study's author says there's no way any improvement in a 
company's performance could justify some executive pay raises last 
year, as high as several hundred percent and in one case 103,000 
percent. In New York, I'm Bob Moon for MARKETPLACE.

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