Economic Glance
While CEOs of companies with the strongest financial results are usually paid hundreds of millions of dollars, rank-and-file employees at these corporations are often less fortunate. Only a small number of the best performing companies give raises or bonuses to most employees that are tied to earnings. Why shouldn't these companies spread the wealth?
Several of the American most successful companies have large numbers of low-paid employees. These people work in retail stores and call centers or clean hotel rooms. Some do not make a great deal more than the minimum wage.
8 companies that most owe workers a raise
Fannie Mae to Pay Treasury $59.4 Billion After Record Profit
The government-sponsored enterprise, which is operating under U.S. conservatorship, had net income of $8.1 billion for the three-month period that ended March 31, according to a statement released today. The Washington-based company’s net worth, which is used to determine what it owes the U.S., was boosted by a reversal of writedowns on tax credits, which may be valuable now that it’s returned to profitability.
Study: U.S. taxpayers employ more low-wage workers than Wal-Mart, McDonald’s combined
Federal taxpayers employ more low-wage workers than Wal-Mart and McDonald’s combined, a new study calculates.
The report from a public policy organization Demos, set to be released Wednesday, estimates that taxpayer dollars fund nearly 2 million private-sector jobs that pay $24,000 a year — about $12 an hour — or less. Those workers owe their incomes to government contracts, Medicare and Medicaid spending, and federal infrastructure funds, among other public sources.
CEO Pay 1,795-to-1 Multiple of Wages Skirts U.S. Law
Former fashion jewelry saleswoman Rebecca Gonzales and former Chief Executive Officer Ron Johnson have one thing in common: J.C. Penney Co. (JCP) no longer employs either.
The similarity ends there. Johnson, 54, got a compensation package worth 1,795 times the average wage and benefits of a U.S. department store worker when he was hired in November 2011, according to data compiled by Bloomberg. Gonzales’s hourly wage was $8.30 that year.
Firms flocking to an obscure tax loophole
More and more U.S. companies are applying to change their status with the IRS to tax free trusts, experts said.
The loophole that has been around since 1960, passed by the Eisenhower administration, allows companies to apply for the special status that has been traditionally reserved for real estate holding companies.
But now a diverse set of businesses are applying for the status, which is enjoyed by about 1,000 companies now, The New York Times reported Monday.
Switzerland, U.S. consider solution to tax evasion dispute
The Swiss and U.S. governments are considering a possible solution to a long-running dispute over Swiss banks accused of helping wealthy Americans evade billions of dollars of tax.
A source familiar with the talks has told Reuters the two sides have agreed an outline for a deal that would divide over 300 Swiss banks according to the extent to which they had helped U.S. clients hide money, to determine how they are dealt with.
Accounting giant KPMG rocked by insider trading allegations
The global accountancy firm KPMG has been rocked by damaging allegations that one of its senior US partners was involved in insider trading. KPMG said it had fired a partner in its Los Angeles office after the employee had passed on information about the firm's clients to an individual who profited from the disclosures.
The firm did not identify the clients, but the footwear company Skechers and the controversial nutritional company Herbalife suspended trading in their shares and said KPMG had resigned as their auditors because of the allegations.
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