imum wage worker living in a Greentree financed mobile home would have to work for 7500 years to earn the equivalent of what Coss earned in 1997. In 1998 CEO Donald J. Carty earned $1,789,919 in salary, bonus and other compensation from AMR Corp. (the parent company of American Airlines). In 1998 the average pilot for American Airlines earned $60,000. Mr. Carty earned about thirty times more than the average pilot did. However, when Cartys stock options are figured in, his bottom line increases from $1,789,919 to $9,598,031 about 160 times what the average pilot earned (AFL CIO). Stock options have become an increasingly important part of CEO compensation packages. Stock options are shares of the companies stock. The idea is that the companies performance will have a direct effect on the companies stock price, this relationship will directly link a CEOs ability to make a company perform to his compensation. The explosive stock market has made that idea obsolete. Stocks of mediocre companies have risen recently just by virtue of the fact that they are in a strong industry and not because the company is performing well. The average CEO earns a salary that is over 200 times what the lowest paid employee in his/her company earns. The CEO also receives bonuses, pay incentives and perks that the lowest paid employee will not receive. Allowances for items such as clothing, automobiles and housing are all part of the CEOs compensation package. The corporate reasoning is that, the CEO will interact at social events with other corporate leaders and must have a proper wardrobe to put forth a proper image of his/her corporation. Furthermore, CEOs will entertain at their houses and must live in a house equivalent to the expectations of his/her guests. The use of company owned vacation properties and luxury hotel suites is another perk the average CEO receives. Another interesting aspect of CEO compensation is a concept called the golden parachute. A...
