CEOs Don’t Answer to Obama

Jia Lynn Yang: “In a report released earlier this month, Goldman Sachs chief U.S. chief economist Jan Hatzius noted that the strength in corporate profits is ‘directly related to the weakness in hourly wages.'”

“Corporate profits are at all-time high as a percentage of GDP, which helps to explain why the stock market has had such a meteoric rise in the last year, something Obama noted in his speech as a source of income inequality.”

“It’s all the result of having a more financialized economy in which shareholder value comes first, an idea that only took root in the 1980s and has steadily blossomed since. Until Obama deals with this fact, every time he asks corporate America to do something like raise wages, executives will feel free to ignore him. And it’s no wonder: Because they don’t answer to the president — they answer to shareholders.”

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  • dogpal

    Please! The corporate heads answer to themselves and to the directors with gobs of stock options! The stockholders are thought of and paid AFTER this order is followed. Do not sing this tired, weary song in my ear! Truth would surely be appreciated for once.

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