Friday, April 8, 2022

Executive Compensation

Executives for large public corporations make a lot of money, sometimes more than guys that can throw a ball through a hoop 23' 9" away. One example is this executive, Ben Fowke, of Xcel Energy, Inc.

Jerry Holt, star-tribune.com

Smiling Ben's compensation for the last year of his tenure with the monopoly electrical company was $22,329,408, the fourth consecutive year that his compensation was more than $20 million. As a means of comparison, his return for 2021 could have purchased 24,297 pressure treated cedar distribution power poles, capable of carrying electricity a distance of 575 miles. 

Additionally, what exactly does Mr. Fowke do for Xcel Energy that merits such a lavish salary and perks? He doesn't climb power poles or retrieve electrocuted squirrels from the tops of transformers. Basically, he makes decisions on the future of the Xcel business based on his interpretations of the recent past and the present, as will his replacement. But, like all utilities, and US business in general, these decisions are extremely limited by the US government. Fowke couldn't even determine the rates charged by Xcel for its services without the approval of a state or federal agency. His projections of the future must follow the lead of these agencies. In other words, his business activity is virtually that of a government bureaucrat. The decisions he makes could be made by any low-paid functionary in the US nomenclatura.

The vaunted free-market liberty concept continually spouted by elements of the US elite is a fraud. Business and government operate hand-in-hand and the leaders of both gather the rewards of this cooperation. 

   

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