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Report: CEOs Enjoy Huge Paydays as Workers Struggle to Pay Bills; Primary Day: What to Watch For in Key Races Across U.S.; New Probe into Missing Foreign Gifts to Trump Officials; NFL QB Deshaun Watson Faces 24th Sexual Misconduct Lawsuit; Mickelson to Join Saudi- Backed Tour After Long Layoff, Controversy. Aired 1:30-2p ET
Aired June 07, 2022 - 13:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[13:33:27]
ANA CABRERA, CNN HOST: If you are one of the millions of Americans who has struggled in the pandemic to pay your bills, this is just painful to hear.
A new report says CEOs are seeing huge paydays while salaries for some low-wage workers aren't even keeping up with the pace of inflation. The average pay gap between CEOs and workers is now 670 to one for the companies analyzed in a new reporter.
CNN's Matt Egan is looking into this report for us.
Matt, just how big of these paydays are we seeing?
MATT EGAN, CNN BUSINESS REPORTER: Well, Ana, no secret that CEOs, they get paid the big bucks. But this report finds the gap between what CEOs are making and the average worker is getting even bigger.
The Institute for Policy Studies, a progressive think tank, they looked at the compensation practices at 300 publicly traded companies with the lowest median pay for workers.
They found that CEOs at those companies, on average, their pay increased by 31 percent last year. Now, I would note this came at a time when corporate profits and stock prices were up.
But to put it in real terms, that means CEOs at these companies received a $2.5 million increase, increase, whereas low wage workers only received a pay bump of $3,500.
This means the average CEO at those companies made $10.6 million last year whereas the average low-wage worker took home just under $24,000.
[13:35:02]
And all of this, I think, gets to one of the main frustrations right now, which is that, yes, people are making more money, but their increases are not keeping up with the cost of living, especially food and energy. And these paychecks are not even keeping up with inflation at
companies that can afford to pay their CEOs a lot of money.
CABRERA: I think a lot of people have been asking as the price of goods continues to go up, the questions around certain price increases are truly unavoidable or whether some of these CEOs are protecting their paycheck. And this report addresses that. Right?
EGAN: That's right, Ana. They do get into that issue.
Let me read you the key line from the report. They said that:
"Last year, with the economy in recovering mode, corporate leaders shifted to new CEO pay-inflating tactics. Many corporations spent record sums on stock buybacks. Others high-handedly used the COVID crisis as a cover for jacking up prices to consumers."
I think this goes to questions about responsibilities the corporations have not just to shareholders but to society at large.
But, Ana, I would note that this issue of corporate greed and inflation is an ongoing debate.
And just this morning, Treasury Secretary Janet Yellen declined to say that corporate greed is a major issue for inflation -- she declined to say it's a major contributor to inflation, which I though was an interesting moment during a hearing this morning.
CABRERA: OK, Matt Egan, thank you. All interesting. Even if it is maddening.
Where does the economy rank when it comes to what is driving voters to the polls? Right now, seven states are holding primaries.
And I want to bring in CNN senior data reporter, Harry Enten, to break it down for us.
We heard Matt's report. We know people are struggling right now. Prices are through the roof. How much of what's in people's wallet is going to be reflected in their vote?
HARRY ENTEN, CNN SENIOR DATA REPORTER: Look, it's the number-one issue, Ana. It's the number-one issue. So most important in your vote for Congress, come this November, look at this, what is number one? It is the economy, 48 percent. That includes gas and inflation.
Nothing else is even close to it. Gun violence, 17 percent. Abortion, 12 percent. Immigration, which a lot of Republicans were thinking they were going to want to run on, that is only at 6 percent.
By far and away, the economy is the number-one issue for voters come this November.
CABRERA: You say crime and gun violence is something that you'll be watching when it comes to some specific races. Right?
ENTEN: If we were to say, what are the key races I'm looking for tonight, there are two in California I'm looking for.
Number one, the San Francisco district attorney recall. Chesa Boudin is facing a recall election. It's a yes/no vote on whether to recall thanks to a petition drive that put the recall on the ballot.
Why are they going after him? He's being targeted by opponents who think he isn't tough enough on crime.
Then we go to the southern part of California, the Golden State. The Los Angeles mayoral nonpartisan primary. These are the top candidates that are running. Karen Bass, Caruso.
Caruso is a progressive. Caruso is running on a campaign of -- get this -- law and order. Again, law and order being key here.
But here's the thing to note. If no candidate gets a majority, there's a runoff come November. Some tonight may get 20 percent of the vote, they may be leading, but they need a majority to win tonight.
CABRERA: How are Americans feeling about crime and gun control right now? It's been such a hot topic lately. Right?
ENTEN: It's been a hot topic. The economy as well.
But in terms of crime, are you very satisfied with the nation's policies to control or reduce crime?
Look at this. In 2022, 42 percent. That's up 10 points from 2021. Up another 10 points from 2020. Up 22 points in total since 2019. This 2022 figure is the highest this century. The highest this century.
And when it comes to gun laws, the same thing. Look at that. How do you feel about the nation's gun policies?
Look at that. Just 41 percent say they're satisfied. And 56 percent say they're dissatisfied. And just 13 percent are very satisfied at this point.
CABRERA: I can feel your energy. You're revved up for the election.
ENTEN: Oh, I am so revved up.
CABRERA: California, west coast, you've got to stay up late.
ENTEN: I have a lot of caffeine.
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ENTEN: I've got Pepsi Max, I've got Coke Zero, I've got the coffee. I'm going to be a little sugar in that to make it better for me. But I'll be through the roof and high.
CABRERA: OK, I don't know what that's going to look like.
ENTEN: Whoo.
CABRERA: I can't wait to see. Text me or something.
ENTEN: I will.
(LAUGHTER)
CABRERA: Harry Enten.
(CROSSTALK)
CABRERA: Got to love him.
Thank you.
[13:39:24]
Missing foreign gifts. We're talking hundreds of thousands of dollars'-worth given to Trump officials who are apparently MIA. Lawmakers are trying to figure out where they went.
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CABRERA: Welcome back. Where are thousands of dollars'-worth of gifts given to former President Trump from foreign officials? House Democrats are trying to find out.
CNN's Kylie Atwood has the story.
Kylie, fill us in. What's going on here?
KYLIE ATWOOD, CNN NATIONAL SECURITY CORRESPONDENT: House Democrats are trying to figure out where the location of potentially thousands of dollars'-worth of gifts that President Trump received from foreign governments actually are.
Because what happens here, traditionally, Ana, is when the president received gifts like this, they are appraised at the White House. There's a list of all the gifts that are given to the State Department.
[13:45:01]
They then publish that list. And if the gifts are more than $415, they are U.S. government property. And that is the thing that the officials are looking at here.
The State Department does not have the list from the White House of all of the gifts that were given to President Trump by foreign governments in 2020.
And so, therefore, the State Department wasn't able to make the list public. And there are questions about where those gifts actually are. How much they were apprised at.
And the State Department was looking into this, trying to figure out where all the gifts are. But they are not able to get into the records that have to do with the White House, with the vice president. And so that is why this committee, the Oversight Committee, in a
letter to the National Archives that was obtained by my colleague, Zack Cohen, is asking the archives to try to get them all the documents surrounding these gifts.
To create and collect any information they can about which gifts were given, how much they were apprised at, and the like.
And the thing here, Ana, is that we know that there were gifts that were given to President Trump on these foreign trips, because they were reported publicly in many instances.
There was a marble statue of the Gandhi three monkeys statue that was given to President Trump in India. That has been reported on. The U.S. government doesn't right now know where that statue is. That is one of the many examples.
To explain to folks why all this matters, Chairwoman Maloney, of the Oversight Committee, in the letter to the National Archives, wrote:
This has to do with "national security and foreign policy interests of the United States being at risk, and about possible violations of the Constitution, which prohibits the president from obtaining benefits from foreign entities while in office."
So clearly, this doesn't just have to do with the gifts, but what those gifts may have represented, and any impact they could have had on the president's relationship with those foreign governments -- Ana?
CABRERA: I was reading another example, a gift given to the Trump administration officials, where a $5,800 bottle of whisky that's now missing. They span the full range of types of gifts.
Kylie Atwood, thank you for that interesting report.
NFL Quarterback Deshuan Watson making headlines again and again. And this has nothing to do with football. A 24th woman is now accusing him of sexual misconduct. Twenty-four. How the NFL is responding.
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CABRERA: Cleveland Browns Quarterback Deshuan Watson is now facing his 24th civil suit, accusing him of misconduct. The latest one filed by a former massage therapist in Houston who says Watson engaged in unwanted sexual conduct. And she quit the profession shortly after the incident.
Watson's lawyer issued this statement saying, "Deshuan continues to deny he did anything inappropriate with any of the plaintiffs."
The NFL is currently investigating whether Watson violated its code of conduct but the league has yet to comment on this latest allegation.
Let's bring in Bomani Jones, the host of the ESPN podcast, "The Right Time with Bomani Jones.
Bomani, thanks for taking the time.
Again, the allegations have been mounting, yet Watson just recently inked a $230 million contract with the Browns. The team was aware of many of the allegations. Does this new lawsuit change anything?
BOMANI JONES, ESPN PODCAST HOST, "THE RIGHT TIME WITH BOMANI JONES": No, it doesn't, I don't think. Once you start getting into the 20s, once you add an additional lawsuit, I don't feel like we're talking about that's going to sway anybody's mind.
What we don't know up to this point is what the NFL thinks about this, how seriously they are taking these allegations.
The standard of a grand jury no bill, honestly, is not high enough because the NFL decided their standard is higher than that of the law.
So I think a punishment is going to come. What we don't know is how heavy that punishment is going to be.
CABRERA: What gives? What kind of responsibility should the NFL have in cases like this?
JONES: The responsibility they decided that they wanted to have. When Roger Goodell took this job, they said the standard of being an NFL player was above the standard of the law.
And they picked three guys they wanted to make scapegoats to show what a tough commissioner Roger Goodell was.
That's almost 20 years ago now when you look back on how long it's been since the commissioner got the job. But he decided that the standard of the NFL player was higher than it was for the regular person.
So simply saying it isn't a crime isn't going to be sufficient. So I would expect a suspension of at least six games and wouldn't be surprised if it was more.
CABRERA: I imagine there will be additional public pressure for the Browns to take action, the NFL to do something.
But I want to switch topics as we wait to see what action they take. Let's talk about golf right now.
Phil Mickelson and Dustin Johnson both joining a highly controversial new tour backed by Saudi regime.
Namely, Crown Prince Mohammed bin Salman, who is accused of ordering the assassination of a "Washington Post" columnist, a dissident, Jamal Khashoggi.
It was last November when Mickelson criticized the Saudi regime, saying, we know they killed Khashoggi and have a horrible record on human rights. That's when he made those comments. Yet here he is, going to play in
their tour's first event later this week? What do you make of that?
JONES: He believes that the highest principle going is that he doesn't like the PGA tour treats him and his brethren. And nothing matters more than that, including whatever the Saudis do.
I actually think that what he is saying is almost a revolutionary idea. He's basically saying there's no such thing as ethical capitalism.
That's what Greg Norman basically said when he tried to write off what happened with Khashoggi as everybody makes mistakes and every country has blood on their hands.
They're basically saying, nobody that's got a whole lot of money is going to wind up having clean hands. And that's how they defend what they're doing with the Saudis.
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But the truth is, for them, they feel like the PGA tour is a monopoly and nothing matters more than their desire to topple the PGA tour.
CABRERA: Not everybody feels that way. I have heard that Tiger Woods was offered a crazy amount of money to join this tour that is the Saudi-backed tour, and something like a billion dollars. He turned it down. So, big comparison there.
Bomani Jones, great having you here. Thank you.
JONES: Thank you.
CABRERA: That does it for us today. Thanks so much for spending some of your afternoon right here on CNN. I'll see you again tomorrow, same time, same place.
Until then, don't go anywhere. The news continues after a quick break.
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