Thursday, September 20, 2007

The Rich Get Richer, We Get Poorer

In my last post, I commented on EDS permanently whacking another 12,000 middle class American jobs (Offshoring jobs to low labor cost nations). Afterward, I wondered how much money the current CEO, Ronald Rittenmeyer is paid given that EDS is allegedly so concerned with cost cutting.

Well, in 2006, Rittenmeyer received a salary of $770,000 plus a bonus of $310,000. Salary and bonus for CEO Rittenmeyer in '06 was $1,080,000 -- over a MILLION dollars. But that's not all: there's this "Latest FY other long-term comp." item totaling over FOUR MILLION DOLLARS: $4,318,694. The real total 2006 compensation for the cost-cutting CEO of EDS is $5,399,527. Look at that number real hard. That reads FIVE MILLION, THREE HUNDRED, NINETY-NINE THOUSAND DOLLARS.

Of course in 2006, Rittenmeyer was just a peon at EDS, merely the "President/COO/Director" -- not the "CEO". The CEO of EDS in '06 was Michael H. Jordan who received total cash compensation from EDS of $13,639,711 and stock options of $11,007,630. (Total: $24,647,341)

So, look what Rittenmeyer has to look forward to: there's some real room for income growth between $5,399,527 and $13,639,711. Hmm... if Rittenmeyer replaces enough American workers with cheaper workers in India, he can make a good case for pushing close to that THIRTEEN MILLION DOLLAR figure. And don't forget the ELEVEN "MIL" in stock...

EDS plans to hire lower cost workers in, among other places, India to replace the expensive middle class American workers. This is a well known situation: American middle class jobs being destroyed and American middle class workers without comparable job opportunities. This is how "free trade" really works. Corporations eliminate jobs and job opportunities for Americans until Americans are willing to accept the same Third World wages that Indians and others in low labor cost nations are willing to accept. Supporters of "free trade" and unrestricted offshore outsourcing (like Sen. Hillary Clinton) have publicly dismissed this as merely the workings of "global competition".

I note the peculiar injustice and hypocrisy of CEOs like Ronald Rittenmeyer and politicians like Hillary Clinton acquiring tremendous wealth while millions of middle class Americans face an endless "Race to the Bottom" in wages and living standards. While most business leaders and many political leaders claim that free trade is good for America, I think the truth is that offshore outsourcing American jobs is good for them and bad for us.

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Blogger TvAnimator said...

I totally agree. More and more good jobs are being sent overseas. It doesn't seem like the American people have a friend in the political world to turn to on this issue. It feels pretty hopeless. The rich are in charge of this country and call the shots.

Sun Oct 21, 06:27:00 PM GMT-5  
Blogger Info_Tech_Guy said...

Perhaps we can gain some sense real sense of hope when more people express this view? The recognition that we are being "sold out" by most (not all) politicians is, perhaps, the beginning of wisdom...

Apologies for not responding sooner. I'm busy looking for work (again). My job and those of several hundred other American engineers and white collar workers will most likely go to India in 2008...

It's a familiar pattern which most people now understand -- not the sort of thing which evokes shock and disbelief as it did a few years ago.

Tue Oct 23, 11:12:00 PM GMT-5  
Blogger Matt said...


I totally agree with you. Hillary's support of outsourcing to India is the root cause of so many Americans losing jobs at home. We need to stop Hillary from winning in Ohio, Texas and Pennsylvania. Is there a way to mass circulate by email or on TV and radio to inform primary voters in the Ohio, Pennsylvania and Texas about Hillary's support of outsourcing jobs overseas. We need to stop her now. Time is the essence. We need to stop her form winning the primary.

Mon Feb 18, 02:24:00 AM GMT-5  

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