It s No Surprise That CEOs Make More Than Other Employees. But How Much Is Too Much? - Honolulu Civil Beat
It’s No Surprise That CEOs Make More Than Other Employees. But How Much Is Too Much?
New legislation would make Hawaii the first state to tax executive pay gaps, but the proposal may be dead on arrival. Reading time: 8 minutes.
The bank’s chief executive officer, Robert Harrison, earned $6,011,668.
Harrison was paid 110 times more than the bank’s median employee, according to the company’s disclosures to the U.S. Securities and Exchange Commission last year.
A new proposal Senate Bill 747 in the Hawaii Legislature would change that by levying a general excise tax surcharge to any island business where the chief executive officer earns more than 100 times the company’s median employee.
Robinhood Markets Inc. on Friday told Massachusetts regulators that it doesn t take advantage of inexperienced customers, capping a wild week during which the popular online brokerage drew fierce ire for doing just the opposite: standing in customers way.
Still reeling from intense blowback from its decision this week to restrict customers from making trades on certain highflying stocks, Robinhood late Friday responded to a December complaint from Massachusetts securities regulators. The state has accused Robinhood of failing to protect its customers and their assets by aggressively marketing to inexperienced investors and failing to implement controls to protect them.
In a 50-page response, Robinhood called the allegations false and the complaint misrepresents the Robinhood experience.
Scott Martin of Kingsview Wealth Management and Future File legacy planning system creator Carol Roth provide their insights into how Wall Street and Robinhood have reacted to the Gamestop short squeeze.
The trading frenzy that has surrounded Robinhood is taking a financial toll on the online trading app.
The company has had to ask existing investors for a cash infusion of more than $1 billion, according to the New York Times.
Robinhood has been dealing with an extraordinarily high volume of trading this week as investors bought shares of stocks like GameStop.
Robinhood has to pay customers who are owed money from trades, plus money to a clearing facility to guard trading partners from potential losses.
After the close of trading Robinhood CEO Vlad Tenev, on Twitter, acknowledged, the unprecedented attention the move garnered, but also noted the firm will resume some trading in these names on Friday.
“I want to thank everyone for their patience and support. While today’s developments are not new, they are never easy.” he said. Starting tomorrow, we plan to allow limited buys of these securities. We ll continue to monitor the situation and make adjustments as needed.
The chain of events on Thursday may make some sense if you look at the profit and loss some of these battered stocks produce. Retail investors have made a lot of money buying and selling and Thursday’s action also produced heavy losses as well. That s how free markets work.