More About Executive Pay

Reports say that the CEO of Blackstone Group pocketed $400M last year in pay. According to the report, that's around 1/5th of the profit for the company. $400M, yet he only pays Social Security tax on the first $94,200. We often hear how the SS system will need more bodies to support the growing number of retiring Americans. A much simpler solution is no limits on that part of income subject to SS tax, or have the tax kick back in for individuals once personal income reaches $250,000. If a company can afford to pay a single employee $400M, it can afford to pay more SS. SS never contemplated these huge imbalances in annual individual income. Since the purpose of SS is to use the country's wealth to support key social benefits, there needs to be a more equitable sharing of the burden. At the time of the last SS reform, it probably took ten thousand people to earn $400M in a year.