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
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Philip Bump. The Washington Post. Jan. 5, 2016. “The CEO of your company has probably already earned your 2016 salary this year”
https://www.washingtonpost.com/news/the-fix/wp/2016/01/05/the-ceo-of-your-company-has-probably-already-earned-your-2016-salary-this-year/.
