Posted on: Wednesday, August 29, 2001

Rich get richer at others' expense, study shows

Associated Press

As the economy began to stall last year and companies laid off workers, chief executives of big corporations still got hefty pay raises and were rewarded for making job cuts, according to a study by two liberal advocacy groups.

The latest annual survey by the Institute for Policy Studies and United for a Fair Economy found that chief executives of the 52 major companies that announced layoffs of at least 1,000 employees in the first half of 2000 earned 80 percent more on average than chief executives at 365 big corporations surveyed by Business Week magazine.

The "layoff leaders" received an average $23.7 million in total compensation, compared with an average $13.1 million for chief executives overall, the groups' study found.

It said the top job-cutters got an average increase in salary and bonus of nearly 20 percent last year.

The survey also found:

• If the federal minimum wage had grown at the same rate as executive pay, it now would be $25.50 an hour instead of $5.15.

• The 30 highest-paid women in big corporations each earned average total compensation of $8.7 million last year, compared with $112.9 million for the 30 highest-paid men.