There’s a lot of discussion these days about inequality in pay.
It may help to view this question from a historical perspective:
- In 1965, CEOs made 20 times the salary of an average, non-management employee
- By 1995, it was 71.6 times
- In 2014, that ratio had ballooned to an average 303 times.
- The more CEOs of publicly traded companies earn, the less return available for shareholders.
The disproportion in pay between top leaders and an average worker has become more than just a social issue
- Just how big are executive salaries today compared to their employees?
- CEO of CVS Caremark earns 422 times that of the median pay
- Goodyear CEO earns 323 times
- Walt Disney CEO earns 283 times
However, not all company CEOs make the big bucks
- Warren Buffett, of Berkshire Hathaway fame, makes only 9 times his median employee’s salary
- salary of the U.S. president, at $400,000 a year plus a $50,000 expense account, is only 9.5 times the annual mean wage
Philip Bump. The Washington Post. Jan. 5, 2016. “The CEO of your company has probably already earned your 2016 salary this year”