Retirement risk has been transferred to employees.
During the same period that CEOs were doubling their own compensation, the “best” CEOs of the “best” companies abrogated the century-old commitment by employers to provide pensions to their workers. IBM has been the corporate leader in abolishing a “real” pension system for its employees. The 2006 elimination of on-going defined benefit plans was touted as saving the company as much as $3 billion, while providing it with a more predictable cost structure, but the key message went unspoken: IBM’s worker bees were henceforth on their own.
This is the essence of “capture” – CEOs are enriched, while all other corporate constituencies, including government, are left with liabilities. A relatively few autocrats have seized control of the policies and wealth of the United States.