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Entries in Salaries (18)

Wednesday
Jan092013

Men with Above-Average Looks Earn More, Study Finds

iStockphoto/Thinkstock(SYDNEY) -- Good-looking men not only have a better shot with women than guys with below-average looks, they also apparently command higher salaries.

Research in Australia conducted by Melbourne University economist Jeff Borland and former Australian National University economist Andrew Leigh shows guys with above-average looks earned around $33,000 more than men who got short-changed in the looks department.

The study, published in the Sydney Morning Herald, shows handsome men typically scored salaries around $85,802 while men with below-average looks earned an average of $52,058.

Borland and Leigh’s research was conducted with interviewers who went door-to-door and rated their interviewees on a six-point scale from “very much more attractive than average” to “well below average.”  The interviewers were also asked to rate photos of men.

The study found that a “plainless penalty” had more of an impact on salaries than a “beauty premium.”  Men whose looks were rated as below-average by the interviewers earned approximately 26 percent less than average.  On the flip side, handsome men earned 22 percent more than average.

Borland and Leigh say while there is a similar effect with women, the salary differential is smaller and harder to measure.

The research found that guys rated as having below-average looks had lower chances of being employed and when they were employed, typically had lower wages.  Those men were also less likely to be married and had lower chances of being married to a woman with a high income.

Copyright 2013 ABC News Radio

Friday
Oct052012

Morgan Stanley CEO Says Banking Industry Is 'Overpaid'

Scott Eells/Bloomberg via Getty Images(NEW YORK) -- Morgan Stanley CEO James Gorman has folks in the banking sector buzzing with his comments that the industry is "still overpaid."

"There's way too much capacity and compensation is way too high," Gorman told the Financial Times. "As a shareholder I'm sort of sympathetic to the shareholder view that the industry is still overpaid."

A spokeswoman for Morgan Stanley declined to elaborate or make Gorman available for comment. Gorman's doing pretty well though. He received a $10.5 million pay package in 2011, a pay cut of 25 percent from 2010. He's was the 23rd highest-paid CEO in America last year, according to Bloomberg Markets magazine.

Earlier this year, Deutsche Bank co-chief executives Anshu Jain and Juergen Fitschen said compensation reform was one of their three key objectives.

Gorman's comments come a week before the major U.S. banks report their third-quarter earnings. JPMorgan Chase and Wells Fargo will be the first with their earnings releases next Friday, Oct. 12.

Back in July, Morgan Stanley reported a 50 percent drop in its second-quarter earnings to $591 million. The company reported revenue had dropped to $6.95 billion from $9.21 billion the prior year.

Brian Foley, pay consultant and managing director of Brian Foley & Co. in White Plains, N.Y., said with little evidence in the financial markets that the tide has turned, Gorman's comments seem somewhat foreboding.

"My sense is that what's coming in the third quarter is likewise not going to be pretty or even uglier," he said.

Anthony Polini, analyst with investment firm Raymond James, said he agreed with Gorman that there are too many banks in the U.S., but he disagreed that the banking industry as a whole is underpaid.

"The banking industry is overregulated, not overcompensated," Polini said.

Although, Polini conceded, it depends which industry one uses as a comparison.

Comparing to professional athletes and film stars would make most bankers look like they got the short end of the stick, he said.

By international standards, Polini said executives at Bank of America, the second-largest U.S. bank measured by assets, are not overcompensated. Its CEO, Brian Moynihan, receives compensation of $8.1 million, which includes a salary of $950,000, $6.1 million in performance-based stock, $420,000 worth of tax and financial advice and use of the company's aircraft.

"It's all who you compare them to," he said. "I'll take a stand and say I think teachers should make a lot more money."

Polini also points out that the large number of U.S. banks, approximately 7,000 which are dominated by a handful of national corporations, could mean greater competition and choices for consumers.

"Excess capacity is a bad thing on one hand, but if you're looking for a low-interest bank or convenience, even if you live in the suburbs, you probably don't have to drive to a bank," he said. "You could probably walk to one."

Low interest rates have been negatively affecting banks, but Polini said he expects banks to report positive quarterly earnings in terms of commercial loan growth and mortgage banking.

"It doesn't mean that the outlook is going to get much better. We still have a weak economy and a low-interest rate environment," he said.

Copyright 2012 ABC News Radio

Thursday
Sep202012

Twelve Colleges Whose Payoff in Pay Beats Harvard's

State University of New York Maritime College(NEW YORK) -- Graduate from Harvard and your friends and family may be impressed. Graduate from Loma Linda University, and you'll get a better-paying job.

According to PayScale, which tracks college graduates' starting median salaries, the latest crop of Harvard grads will earn $54,100; those from Loma Linda, $64,600.

Harvard's tuition and fees are $40,866; Loma Linda's $29,096.

Asked by ABC News to look for colleges whose new graduates earn more than Harvard's, PayScale came up with a surprising list of 12 schools. Forget Princeton. Forget Yale. Tell your son or daughter to throw away the leather elbow-patches and forget the ivy. What they want is a nice maritime academy or school of mines.

According to the list below, graduates of the Colorado School of Mines earn a starting median salary of $63,400. And they didn't have to dig themselves into a hole to get it: The cost of tuition and fees is only $17,718 for in-staters; $32,748 for out-of-staters. Sure, maybe they'll have to wield a pickaxe now and then, but, after work, they'll be the ones graciously picking up the tab for Harvard grads who forgot to wire home for money.

Graduates of the State of New York Maritime College in Throggs Neck, New York, may get awfully tired of having to explain what a Neck is; but they'll be compensated by a salty starting salary of $57,300. Even more so than the School of Mines, the Maritime College is a steal for in-staters ($6,782), and only somewhat less so for out-of-staters ($16,032).

PayScale has been producing its ranking annually for the past eight years. Lead economist Katie Bardaro says colleges that rank the highest tend to be those that concentrate on engineering, nursing and health sciences.

Worcester Polytechnic Institute (WPI), for instance, stands out she says because it concentrates on computer engineering. In today's world, that's a good thing on which to concentrate: "There's lots of opportunity, and new graduates are paid very well. It's not as tough a market as some others"—e.g., 18th Century organ music.

Still, some of the schools listed here charge stiff tuitions. Rensselaer Polytechnic in Troy, New York, charges $3,600 more than Harvard. But the cost, thinks Bardaro, is more than justified by graduates' higher salaries.

The list below gives each school's name and location, followed by its graduates' median starting and how much they paid for tuition and fees. The cost figures come from U.S. News' annual college ranking.

1. Loma Linda University Loma Linda, CA $64,600 ($29,096)
2. Harvey Mudd College Claremont, CA $64,400 ($44,442)
3. Molloy College Rockville Center, NY $64,000 ($24,420)
4. Colorado School of Mines Golden, CO $63,400 ($17,718 in-state/ $32,748 out-)
5. Worcester Polytechnic Institute (WPI) Worcester, MA $61,200 ($41,380)
6. Rose-Hulman Institute of Technology (RHIT) Terre Haute, IN $60,700 ($39,078)
7. Thomas Jefferson University Philadelphia, PA $59,800 ($32,159)
8. Rensselaer Polytechnic Institute (RPI) Troy, NY $59,500 ($44,475)
9. Felician College Lodi, NY $58,700 ($29,400)
10. Missouri University of Science and Technology (MST) Rolla, MO $58,600 ($9,350 in-state/ $32,666 out-)
11. Clarkson University Potsdam, NY $57,900 ($38,610)
12. State University of New York (SUNY) Maritime College Throggs Neck, NY $57,300 ($6,782 in-state/ $16,032 out)

Copyright 2012 ABC News Radio

Monday
Sep172012

Salaries of Seven Highest-Paid Millionaire Nonprofit CEOs Revealed

Adam Gault/Thinkstock(NEW YORK) -- For the past decade, the Chronicle of Philanthropy has published the highest salaries of the chief executives of the nation's top charities and foundations. According to the most recent findings, which cover 2010 and half of 2011, the top earners routinely make more than $1 million and received a median pay increase of 3.8 percent in 2011.

In the no. 1 spot was Herbert Pardes, the former head of New York-Presbyterian Hospital who retired in 2011. He earned $4,304,346, including about $2 million in bonuses.

Although that might seem like a large salary, it's nothing compared to the CEOs of for-profit companies in the Standard & Poor's 500, whose total median compensation in 2011 was $9.6 million. They also saw a 28 percent pay increase in 2010 and 6.2 percent in 2011. Nice work if you can get it.

1. Herbert Pardes, New York-Presbyterian Hospital (No longer at the organization.) - $4,304,346
2. Peter Marzio, Museum of Fine Arts, Houston (He died in December 2010.) - $3,943,145
3. Gary Gottlieb, Partners HealthCare System - $3,062,505
4. Delos Cosgrove, Cleveland Clinic Foundation - $2,279,364
5. John Seffrin, American Cancer Society - $2,081,246
6. Mark Wrighton, Washington University in St. Louis - $1,920,107
7. James Mandell, Children's Hospital Boston - $1,861,684

Copyright 2012 ABC News Radio

Thursday
Aug162012

Taxpayers Subsidize CEO Pay, Report Says

Justin Sullivan/Getty Images(WASHINGTON) -- The Institute for Policy Studies, a self-described “progressive multi-issue think tank,” analyzed the link between tax loopholes and excessive executive compensation and concluded that the loopholes created an “uneven playing field” between large companies and small businesses and led to lost tax revenue.

The latest edition of the institute’s annual Executive Excess compensation study found that in 2011, 26 CEOs received more in compensation than their companies paid in taxes, and that the four major tax loopholes contributing to excessive executive pay cost taxpayers about $14.4 billion a year.

“The report is timely at a time when the tax debate is so intense in this country,” Sarah Anderson, the institute’s global economy project director and the report’s co-author, told ABC News.  "Some leaders are saying we need to reduce the corporate tax burden even more while major companies are taking advantage of loopholes to lower their tax bill."

The report critiqued the major tax loopholes, including the preferential treatment of “carried interest” income for hedge fund managers.  "Carried interest" income can be taxed as capital gains -- at 15 percent tops -- instead of at 35 percent, the top income tax rate. The Congressional Budget Office's projected estimate for “carried interest” income -- revenue from investment income or dividends -- for 2012 to 2021 was $21.4 billion.

Companies can deduct executive pay as a business expense, just as they do inventory and appreciation. Because of a tax rule enacted in the early 1990s that limited the amount of cash that could be deducted to $1 million, corporations have increasingly paid executives in stock options. Corporations can exempt stock option compensation, and other performance-based pay, from taxation.

William McBride, chief economist with the Tax Foundation, a conservative-leaning nonpartisan think tank, said this makes sense, because stock options are speculative compensation.

“They’re worth nothing unless they’re in the money,” McBride told ABC News. “It wouldn’t be fair to tax someone for getting paid an option that doesn’t have any real value until it has been exercised.”

Steven Balsam, an accounting professor at the Fox School of Business at Temple University, said from a business viewpoint, “it’s an expense, just like any other person’s salary.”

Others defend performance-based compensation for high-performing executives who have overseen companies with increasing earnings and stock prices.

Balsam said it was unlikely that boards would limit executive pay even if their pay was not tax deductible.

Anderson, who co-wrote the report, said that company boards that might choose to forfeit the deduction and continue paying high compensation packages “are stacked with executives from other firms that have a vested interest in maintaining the status quo.  

“However, we need to keep chipping away at the myth that massive payouts are necessary to attract talented managers,” she said. "Having a meaningful deductibility cap would send the right message, and at least taxpayers wouldn’t have to continue to subsidize excessive pay.”

The report points to the largest beneficiaries of the tax loopholes, saying they benefit the most from the unlimited tax deductibility of executive pay because their compensation has the largest proportion of deductible, performanced-based pay.

Oracle’s Larry Ellison, the sixth richest person in the world with a net worth of $36 billion, according to Forbes, tops the list, and is followed by Discovery Communications’ David Zaslav; Viacom’s Philippe Dauman; Motorola Mobility Holdings’ Sanjay Jha; and CBS Corp.’s  Leslie Moonves.

Neither Oracle, Discovery Communications, Viacom and Motorola Mobility Holdings returned calls requesting comment. A spokeswoman for CBS Corp. and a spokeswoman for Discovery declined to comment.

Copyright 2012 ABC News Radio

Monday
Jul302012

Babysitting Salaries Aren't Kid Stuff Anymore

iStockphoto/Thinkstock(NEW YORK) -- Back in the day, when TV was in its infancy and a gallon of gas cost much less than what a postage stamp does today, babysitters were lucky to have earned about 50 cents an hour.

Today, the going rate nationally for child care services is $12.75 an hour, according to UrbanSitter, a babysitter location website, which makes anyone earning the minimum wage of $7.25 wonder what they’re struggling for.

UrbanSitter CEO Lynn Perkins says nannies and college grads with early childhood education experience can earn $15.50 per hour on average if they’re located in the Northeast, while those in northern California don’t do badly for themselves either.

Perkins believes there’s a reason for that in addition to higher incomes because in “the Northeast and in the Bay Area, you have many people who aren't originally from these areas, so fewer people have family they can turn to for child care support and they're more dependent on outside babysitters.”

Meanwhile, those parents who can’t afford to pay steep hourly fees tend to get together with other families and essentially “bundle” their kids to be watched by one sitter so that even paying 30 percent more per child still comes out cheaper in the long run.

Copyright 2012 ABC News Radio

Monday
Jul162012

What to Expect If You're Expecting a Raise

iStockphoto/Thinkstock(NEW YORK) -- How much higher can those fortunate enough to have a job expect their salaries to rise in the next year? The answer is three percent, according to a study by the consulting firm, Hay Group.

According to the consulting firm’s research, executives, middle management, supervisory and clerical positions will see a median three percent pay increase in 2013, based on data collected between May and June this year from 350 organizations.

The study found the vast majority of organizations, at least 80 percent, reported an average increase of between 2.5 percent and 3.5 percent salary.

The oil and gas and luxury retail sectors reported the highest median increases at 3.3 percent and 3.5 percent, respectively.

“Historically many employees saw annual salary budget increases greater than three percent, with a drastic dip or freeze during the 'great recession,' and now we have settled into what may be a new normal of three percent,” said Jeff Blair, Hay Group’s U.S. Productized Services Leader.

In 2000, salaries increased a median of 4.4 percent, followed by an uneven decline in the increases, according to the Hay Group.

Blair said this is not a “sustainable strategy, especially for hot jobs or hard-to-fill positions.”

Employers will have to be committed to creating a positive work climate among other ways to keep employers and stay productive, he said.

Wages and salaries increased 1.7 percent for the current 12-month period ending in March 2012, according to the Bureau of Labor Statistics, compared to 1.6 percent for March 2011.

Copyright 2012 ABC News Radio

Monday
May142012

Missouri Petitions to Raise Minimum Wage

iStockphoto/Thinkstock(NEW YORK) -- What's the national minimum wage? If you're, say, one of three Republican candidates running in Missouri's U.S. Senate primary, you might be hard-pressed to remember it (it's $7.25).

But if you're one of about 173,000 people living in Missouri, you can probably rattle it off the top of your head. That's the number of people in Missouri -- enough signatures to put the measure on the November ballot -- who signed a petition to raise the state's minimum wage from the national average per hour to $8.25 in 2013, and provide for cost-of-living adjustments in the future.

The measure would also require that employees who earn tips receive 60 percent of the state minimum wage, up from the current 50 percent. And if the federal minimum wage rises above the state rate, then Missouri would adopt the federal wage and apply cost-of-living adjustments to that.

There's a good chance that the measure will pass. Missouri Jobs with Justice, a backer of the minimum wage proposal, supported a successful campaign in 2006 to approve a ballot measure that raised Missouri's minimum wage to $6.50, with adjusted cost-of-living increases.

But not everyone is in favor of it. Some critics of the change says the ballot summaries and cost estimates for the proposals are unfair.

Many economists maintain that raising the minimum wage can negatively impact employment numbers, especially among teenagers and young workers. Scott Brown, chief economist at Raymond James Equity Research, in St. Petersburg, Fla., said that he does not think the Missouri situation would cause any problems. "It's probably not going to matter much," he said. "The typical concern is that it will lead to less-entry level jobs for young people. That's the fear. But again -- what's the going wage and what are the typical starting salaries in an office or fast food? Very often those are well above the minimum wage in some areas."

On its website, the U.S. Department of Labor lists the states whose minimum wage is above the national average, below, the same -- or doesn't have a minimum wage law. (23 states have a minimum wage at the federal level of $7.25.)

Here's the top states with the highest minimum wages:

1. Washington

$9.04

2. Oregon

$8.80

3. Vermont

$8.46

4. Nevada, Connecticut, Illinois

$8.25

Here are the bottom states with the lowest minimum:


47. Arkansas

$6.25

(Applicable to employers of 4 or more)

48. Georgia

$5.15

49. Minnesota

Small employer (enterprise with annual receipts of less than $625,000) $5.25

Large employer (enterprise with annual receipts of $625,000 or more) $6.15

50. Wyoming

$5.15

(Applicable to employers of 4 or more employees)

Copyright 2012 ABC News Radio

Friday
Apr202012

CEO Pay Now 380 Times Average Worker's, Says AFL-CIO

Adam Gault/Thinkstock(NEW YORK) -- Just when you thought executive compensation couldn't get much higher, the average CEO pay increased 14 percent to $12.9 million in 2011, 380 times that of the average worker, according to the AFL-CIO's annual Executive Paywatch report released on Thursday.

The report, called CEO Pay and the 99 percent, found that among the 300 firms of the S&P 500 companies that filed annual proxy reports, the average level of CEO pay rose 13.9 percent, following a 22.8-percent rise in 2010.

The national labor group launched its Executive Paywatch analysis 15 years ago to inform the public about growing inequality in labor wages, AFL-CIO President Richard Trumka said in a press conference about this year's report.

As CEO pay increased, Trumka said more than 12 million workers are without a job, and "those with a job had a 2.8-percent raise, barely keeping up with inflation," he said.

The updated data is searchable by industry and state, and includes a list of the 100 highest-paid CEOs.

The report shows the growing gap between pay of workers and CEOs, allowing visitors to the Executive Paywatch site to compare their own pay to that of various CEOs and the average worker, which was $34,053 in 2011, according to the AFL-CIO.

For the first time, the website details how mutual fund companies have voted as shareholders on executive compensation packages. The report looked at the 40 largest mutual fund families to see how they influence executive compensation, encouraging transparency on behalf of workers who hold fund investments. Trumka explained that investors can see how their mutual funds voted, and can voice their concerns about CEO pay.

"Mutual funds wield enormous clout on CEO pay issues, thanks to the new CEO 'say-on-pay' requirement [in which] shareholders can cast a vote on CEO pay," Trumka said.

Mutual fund company Harbor Funds was labeled as the biggest "pay enabler" by the AFL-CIO for voting against less than 1 percent of executive compensation packages. Mutual funds from Federated Investors allowed that investment company to be crowned the biggest "pay constrainer" for voting against 73.6 percent of pay packages.

FirstMerit Corp. became the fourth company this year on Wednesday to have a failed vote from shareholders about executive compensation. Citigroup had its failed vote on Tuesday after Actuant Corp., an industrial manufacturer and distributor, and International Game Technology, a gaming machines company.

Most companies with publicly traded stock held "say-on-pay" votes in 2011, according to the Dodd-Frank financial regulatory reform law. The U.S. Securities and Exchange Commission exempted smaller companies with less than $75 million in publicly traded stock from holding these votes until 2013. Only 41 out of the 3,000 companies in the Russell 3000 Index had failed "say-on-pay" votes last year, according to Ted Allen, spokesman for ISS Proxy Advisory Services.

The following is the AFL-CIO's list of top 10 mutual fund family "pay enablers" and the percentage of pay packages they voted against.

  1. 0.59 percent -- Harbor Funds
  2. 1.34 percent -- Goldman Sachs Asset Management
  3. 1.37 percent -- The Vanguard group
  4. 2.87 percent -- Lord Abbett and Co.
  5. 3.37 percent -- BlackRock
  6. 3.69 percent -- TIAA-Cref
  7. 4.13 percent -- ING Funds
  8. 5.67 percent -- Putnam Investments
  9. 5.97 percent -- T. Rowe Price
  10. 7.18 percent -- Nationwide Mutual Funds

Copyright 2012 ABC News Radio

Friday
Jan202012

Penn State Still Paying Big Salaries to Dismissed Officials

Justin K. Aller/Getty Images(UNIVERSITY PARK, Pa.) -- Penn State University continues to pay lucrative salaries and foot the legal bills of five officials it fired, suspended or forced out of office over the school's sex abuse scandal, but refuses to make public what the former administrators are making.

The university's Board of Trustees, meeting Friday for only the second time since the scandal broke, has insisted that the financial arrangements with former school president Graham Spanier and legendary football coach Joe Paterno are confidential.

Spanier was forced to resign and Paterno was dismissed after a grand jury indicted former assistant coach Jerry Sandusky on charges of molesting boys over a 15 year period. The grand jury report suggested that school officials failed to act on witness accusations about Sandusky's alleged behavior.

Two other school officials, former vice president for finance Gary Shultz and former athletic director Tim Curley, were charged with perjury and failure to report sexual abuse of a child. Curly was put on administrative leave from the university and Shultz resigned.

Assistant coach Mike McQueary who witnessed the alleged sexual assault of a boy in a Penn State lockerroom, has been put on paid leave. He reported the incident to Paterno, but critics have questioned why he didn't intervene to stop the assault, waited a day to tell Paterno and never went to police.

Multiple board members and the board's attorney did not return calls for comment on this story.

Michael Boni, the attorney representing Victim 1 in the case against Sandusky, said Penn State's continued compensation and refusal to discuss it doesn't surprise him.

"Penn State appears to continue to seem to care more about its own than the victims, as demonstrated by this conduct," Boni said.

Spanier, who was the president of Penn State until he handed in his resignation the night the board met to fire Paterno, was paid $813,855 in 2009, the most recent record available. He remains employed by the university despite stepping down as president.

According to school spokeswoman Lisa Powers, Spanier is a tenured faculty member in the Department of Human Development and Family Studies, with the additional title of president emeritus.

Powers said that she could not comment on Spanier's current compensation because of a confidentiality agreement in his contract, despite his salary previously being made public on the school's website.

Paterno, who was fired as head coach by the Board of Trustees after Sandusky's arrest, also continues to be employed at the university, where his last publicized salary was more than $1 million, according to financial records and university statements.

Paterno is a tenured member of Penn State's faculty in the college of Health and Human Services, Powers said.

Powers said she couldn't release Paterno's current compensation because his "continued service" to the university has not yet been determined, and will be publicized once a retirement package is finalized.

According to the Pennsylvania State Employees' Retirement System, Paterno will receive more than half a million dollars per year in retirement, not including any separate arrangement worked out with the university.

Curley continues to receive the same compensation he was getting before he was charged criminally, in addition to his legal defense costs, including any civil suits that arise. His salary has never been made public and is excluded from a publicized list of the 25 top salaries at the university, meaning he makes less than $427,494 a year.

Shultz, the former vice president of business and finance, is no longer on the payroll, though he is part of the State Employee Retirement System, through which he makes $330,699 a year, and has a retirement agreement with the university, which Powers said is not public information.

Copyright 2012 ABC News Radio







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