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Inequality within publicly traded corporations is a fairly new phenomenon. It was not a primary concern until the United States started to move farther away from manufacturing and labor, and into the finance sector. With this shift, executives of these corporations have put less emphasis on using earnings to reinvest in employees, and the overall well-being of the company, and instead have put more emphasis on boosting stock profits for personal gain. This is done through share buybacks, allocation of profits, and lack of accountability. These personal gains leave very little profit to supply higher incomes for employees or invest in future growth of the company. == History == Since the 1970s, the United States has experienced an ever-widening gap between the top one percent of income earners, in comparison to the other ninety percent. As a result, there has been less mobility among social classes as the rich continue to get richer, while the middle class faces wage stagnation. By increasing the demand for a company’s shares, open-market buybacks automatically lift its stock price and can enable the company to hit quarterly earnings per share targets This practice really took off in the 1980s, when critics claimed that corporate leaders were not doing enough to maximize returns to shareholders. This resulted in boards of directors trying align the interests of management and shareholders by increasing the amount of stock-based pay within executive compensation. This is done through an open-market repurchase. Allocation of profits has transformed within businesses throughout the years. What used to be value creation has now turned into value extraction. Since the end of World War II and until the late 1970s, businesses used a method known as the "Retain-and-Reinvest" approach. Now, however, businesses use the "Downsize-and-Distribute" approach. Policies have been put in place in order to try to combat inequality within publicly traded corporations. The Dodd-Frank Act was signed into federal law by President Barack Obama on July 21, 2010. This act affects the oversight and supervision of financial institutions. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Inequality within publicly traded companies」の詳細全文を読む スポンサード リンク
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