CEOs Continue to Get Big Pay Raises despite Economic Downturn Posted by: Lisa Nichols | Jun 16,2008

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Despite the economic downturn, CEOs continue to get big pay raises, say reports. Chief executive officers are typically at the top of the job pyramid, and only answer to a board of directors. While many workers already know they can’t count on standard 4% pay raises or profit sharing this year, CEOs saw a comfortable gain in salary and perks packages over the last year.

 

AP Study Highlights CEO Salary Gains

 

The Associated Press analyzed executive compensation for CEOs of Standard & Poor’s 500 companies and found that salary totals increased by almost $300,000 from 2006. The median pay package for CEOs totaled almost $4 million. Topping the list was CEO John Thain of Merrill Lynch, who took over the company in December 2007 and received a reported salary package of $83 million, including a signing bonus and other incentives. The ten highest-paid CEOs on the AP list made more than $500 million in 2007.

 

CEO Pay Raises Include Perks

 

The median pay in the AP study, which took place over the last two years, includes bonuses and stock options. The study focused on the 410 companies in the S&P 500 that reported on compensation between January and June 2008. Despite the inflated salaries of CEOs, many of the reporting companies reported dwindling profits overall. The AP study found that CEO salaries did not change based on a company’s profitability.

 

If you don’t take home a CEO’s salary, and you need to get ahead of bills, consider moving your high interest debt to a low interest credit card or to a cash back credit card. Low interest credit cards allow you to pay off debt more quickly, by reducing the overall amount that you owe and making your monthly payments smaller. A cash back credit card helps you to earn money back on the money you charge to the card, and often includes special incentives and extra cash back for using the card to make certain purchases. 

Credit Card Approvals Tighten Posted by: Henry Baum | Jun 13,2008

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  It’s pretty much conventional wisdom now that it’s harder to get a loan.  Banks and other lenders reeling from losses in the mortgage industry are less willing to take a chance on new borrowers, even if the borrower has a decent credit rating.  As a result, these same borrowers are looking towards credit cards as a loan source, as credit cards are easier to secure.  

Because credit cards have such a higher interest rate than other types of loans, credit card companies are more willing to take chances on high-risk borrowers.  However, this is becoming less true, as credit card issuers are less willing to offer credit cards to borrowers with bad credit and to borrowers overall. 

Credit Card Survey

In a survey of credit card issuers, it has been shown that the number of lenders have tightened restrictions on credit card applications from 5% in 2007 to 35% in 2008.  That suggests that it’s not only credit card companies that offer bad-credit credit cards, but lenders of every stripe that are tightening lending standards.  

In one sense, this can be seen as good news, though that’s a tough pill to swallow if you’ve been denied a credit card.  The major criticism leveled at the credit industry after the subprime mortgage crisis is that lending practices had become far too lax.  Mortgage lenders were giving out mortgages to high-risk borrowers without taking into account the long-term effects.

So the new lending standards are not only a result of lenders trying to save money during the credit crisis, but an overall “culture of responsibility” for the lending industry.  Compared to past lending standards, in which lending standards were so liberal as to be economically dangerous, these new lending restrictions can be seen as more reasonable.  That said, the credit crisis is contributing to the new lending restrictions considerably, and once the credit crisis is in the rearview mirror, some of these restrictions will be lifted again.   

Airline Travel Costs Keep Going Up this Summer Posted by: Lisa Nichols | Jun 13,2008

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Airline travel costs will continue to rise this summer. In June news, Delta is cutting twice as many jobs as they originally anticipated in order to stay profitable. 4,000 employees have accepted the airline’s buyout package to date. Many major airlines have decided that they will need to make cutbacks because of rising fuel costs. In addition to cutbacks in airline operations staff, airline travel costs will also continue to increase this year as airlines look for ways to avoid bankruptcy. We’ve talked previously in the Finance Headlines about increased fees for food and for checked baggage. In addition to baggage fees, major airlines will also slash flights this summer. This includes cutting out a number of nonstop flights, meaning airline travel will take a lot more time to do. And, less flights also means more crowding on planes. There are ways that you can save money on airline travel costs. You may need to be flexible about when and where you fly, but the savings can quickly add up and help make airline travel costs much more affordable and enjoyable for you and your family this year.

 

Save Money on Airline Travel

 

You can save money on airline travel when you make some concessions. If you’re willing to drive two or three hours before your flight, you can save money by flying out of an airport other than the one in your hometown. This is especially true in cities that have large hubs for major airlines. Driving away from the hub to a smaller town can mean a savings of hundreds of dollars on airfare. You can also save money on airline travel when you compare rates at several airlines and at comparison travel websites. Calling an airline ticketing department instead of using their website can sometimes save you money, too. If you can be flexible, you can save money on airline travel when you book tickets using a website that specializes in last minute deals. Getting an airline miles credit card or a rewards credit card can also help you save money on airline travel costs. The cards can quickly turn dollars spent into miles to help you earn a free ticket. Use the credit card or cards frequently and for big purchases and look for opportunities to earn double miles to get as many miles as you can. 

Mom and Pop Businesses Clipped by Recession Posted by: Lisa Nichols | Jun 12,2008

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Family owned and locally based mom and pop businesses have suffered during the recession. Small business marketing, branding and rebates and rewards programs ensure that mom and pop businesses will stay afloat, even during an economic downturn.

 

Small Business Marketing Helps Mom and Pops Stay Alive

 

Small business marketing can help mom and pop businesses stay alive during the recession. Companies that cater to hobbyists will always have a dedicated following as long as they provide superior customer service and unique products. Small business marketing includes outfoxing the big box providers by providing items for which there is a great need, but a limited supply. The so-called “long tail” theory presupposes that sellers will have adequate space to store the items that they sell and can distribute them for an affordable cost. Small business marketing tactics that follow the principles of the long tail theory can also benefit from carefully branding- and maintaining the brand- of their business.

 

Small Business Branding Makes Mom and Pops Shine

 

Small business branding also helps mom and pop companies remain profitable during a recession. While it’s easy enough for a number of people to copy someone’s business idea, the first one to market has the greatest opportunity for creating and maintaining relationships with customers and clients. By keeping small business branding tactics high on the list of marketing priorities, mom and pops can continue to foster their “bread and butter” relationships with long-term customers. Bread and butter may not be the most lucrative customer or client, but it’s the steady customers that pay the rent.

 

Rewarding Mom and Pops for All of their Hard Work

 

Mom and pops can get rewarded for their hard work by using a business credit card for all of their business purchases. Many business cards are rewards credit cards that provide cardholders with cash back, free travel or other rebates every time they use their card to shop. In addition, business rewards credit cards typically provide additional cash back for using the cards for certain business-related expenses including entertainment, gas or shipping and office supplies.