Of course, not if you’re rich. At the end of 2021, the average retirement balance for S&P 500 chief executives was $19.4 million, according to IPS research. IRS reports are filled with similarly grotesque examples of inequality. His C. Douglas McMillon, CEO of Walmart, said: a year Salary of $27,136, to be taken after retirement monthly A check for $1,042,300. Ralph Lauren is hoarding $54.4 million in deferred compensation for his golden age (it’s already started; he’s 83), yet a whopping 41 percent of employees have zero 401(k) balances. be. This either didn’t fund them or didn’t fund them. They had to withdraw everything they put in (and paid a fair amount of tax on the transaction).
I’m interested in causality. Why do so many of Lauren’s employees zero out on his 401(k) balance, because all they can do is put food on the table. His company average salary he is $26,670.Why are the salaries at Lauren’s company so bad? wall street journal described a more general trend Here it is:
cutting [defined-benefit pensions] …paper profits are generated and added to operating income along with income from the sale of hardware and trucks …The ability of employers to generate profits by reducing severance pay has been linked to the tendency to tie executive compensation to performance. Matched. Whether intentional or not, the executives who gave the go-ahead to slash retirements were indirectly increasing their salaries.
A portion of that compensation was deferred as retirement benefits. And during this same period, since the 1980s, corporate boards have come up with creative ways to shield a greater proportion of the highest-paid executives’ retirement benefits from taxation than is available to lower-paid employees. I completed it. This alchemy, no joke, was accomplished by something called the Top Hat Project.