The Rich Get Richer, We Get Poorer
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.