The AFL-CIO, one of America's most prominent unions, just released its report titled "2008 Executive PayWatch." This is the first in a multi-part look at the findings of the report:

"The chief executive of a Standard & Poor's 500 company made, on average, $14.2 million in total compensation in 2007, according to preliminary data from The Corporate Library. Problems with executive compensation came to a head in 2007 with large severance packages given to CEOs of companies at the center of the mortgage crisis. The International Monetary Fund estimates that the financial turmoil set off by the collapse of the mortgage market could total nearly $1 trillion. Yet, chief executive officers of the firms most responsible for causing the crisis collected hundreds of millions of dollars in pay last year. This highlights the need for further reform to protect companies and their investors."

Not surprisingly, the AFL-CIO report draws the obvious disparity between worker and executive compensation:

"A reasonable and fair compensation system for executives and workers is fundamental to the creation of long-term corporate value. However, compensation for top executives has grown at an unprecedented rate in the past two decades resulting in a dramatic increase in the ratio between the compensation of executives and rank-and-file employees.

The chief executive officers of large U.S. companies averaged $10.8 million in total compensation in 2006, more than 364 times the pay of the average U.S. worker, according to the latest survey by the United for a Fair Economy."

This is certainly not news to individuals that follow the industry, but coming from a prominent union it may draw increased attention. In up-coming posts, the focus will turn specifically to executive compensation in companies in the mortgage and housing sectors.