Executive pay not a simple issue

Reading Daniel Akst's column "CEO's millions send a destructive message" [April 4], it strikes me as the same situation between our elected officials and the various municipal unions. Mr. Akst states, "CEO pay is negotiated with the board of directors, which is likely to be all too generous."

In return for generous pensions and fringe benefits (both of which are not seen by those of us who work for a nongovernment entity), the union leadership gives, in return, generous donations to the re-election funds of the same officials, as well as endorsing them to their union membership. So, as in the case of corporations, where the "little people" get laid off, it's the same "little people" (aka, middle-class taxpayers) who end up footing the bills in the long run. As we know, both the poor and the rich don't pay their fair share of the tax burden.

We also can look to Washington, where companies such as General Electric make billions in profits and yet, because of the many loopholes in the tax laws, end up paying not one penny in taxes.

It's all a matter of one hand (politicians) washing the other (unions and corporations), and it's you and I who are footing the bill for the soap and water.

Thomas W. Smith

Jamesport
 

Daniel Akst's column overreaches by attempting to link executive compensation with the actions our company has taken in our manufacturing facilities on Long Island. We are deeply disappointed that the column did not include important points that we believe the readers of Newsday should know.

The Estée Lauder Cos. has a strong, 60-year history on Long Island and is committed to our employees and continued presence in this region. While we've seen other companies depart Long Island, we are further developing our people and investing in our manufacturing facilities to enhance our global competitiveness. These vital local investments will further strengthen our ability to continue to produce world-class prestige beauty products for our markets across the globe.

This enhancement process has involved difficult decisions, most notably and painfully, the consolidation of certain positions on the manufacturing floor. To ease the transition for affected employees, we are providing generous severance, health care benefits and outplacement services.

Our company has thrived under the leadership of our chief executive, Fabrizio Freda. He has laid the groundwork for continued growth, helping to assure a vibrant future for all of our constituents. Securing that future is central to the Estée Lauder Cos.' ability to be a sustainable employer on Long Island for many years to come.

Alexandra Trower

Manhattan

Editor's note: The writer is an executive vice president with the Estée Lauder Cos.