US executives are pocketing cash saved by outsourcing

Chief executive officers at the companies outsourcing the
most jobs overseas seem to be pocketing some of the savings, new research
claims.

 

A report from the Institute for Policy Studies and United
for a Fair Economy shows that average CEO compensation at the 50 US
firms outsourcing the most service jobs abroad increased by 46 per cent in
2003.

 

Heads at top offshore outsourcers earned an average of
$10.4m (£5.8m) in 2003, while average CEO compensation hit $8.1m (£4.5m),
according to the report.

 

From 2001 to 2003, the top 50 outsourcing CEOs earned $2.2bn (£1.2bn) while sending an estimated
200,000 jobs overseas, the report says.

 

"These 50 CEOs seem to be
personally benefiting from a trend that has already cost hundreds of thousands
of US jobs and is projected to cost millions more over the next decade,” the
report said.

 

Daniel Thomas

 

 

 

 

 

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