Pay Gap Between CEOs and Employees

atkins-bookshelf-cultureIn 1976, the average American CEO earned 36 times the salary of the average employee. By 2008, the average CEO made 369 times the salary of the average employee. By 2013, that disparity increased once again: the average CEO earned 495 times that of the average worker. For some of the largest public companies in America, the ratios average 1,500 to 1! So while the typical CEO worries about which of his five houses he will spend the long weekend (requiring trips on his private airplane), the average worker worries if he can afford to send his kids to college or afford health insurance for his family. Ah, the American Dream…

The Dodd-Frank Wall Street Reform and Consumer Protection Act passed by congress in 2010 had a provision for public companies to publish their CEO-to-worker ratios to discourage excessive CEO compensation packages that many believed led to the nation’s recent financial collapse. Lobbyists, working on behalf of the corporations, have opposed this provision and have not published these numbers. The currently published ratios have been calculated by independent research organizations and publications, like Bloomberg.

Below are the highest CEO-to-employee pay ratios calculated by Bloomberg:
1. JC Penney Co.: 1,795 to 1
2. Abercrombie & Fitch Co: 1,640 to 1
3. Simon Property Group, Inc. 1,594 to 1
4. Oracle Corp: 1,287 to 1
5. Starbucks Corp: 1,135 to 1
6. CBS Corp: 1,111 to 1
7. Ralph Lauren Corp: 1,083 to 1
8. Nike, Inc: 1.050 to 1
9. Discovery Communications: 833 to 1
10. Yum! Brands Inc.: 819 to 1

Read related post: How Much Do Teenagers Spend?

Richest Americans

For further reading: The Big Squeeze: Tough Times for the American Worker by Steven Greenhouse, Random House (2008)
http://www.businessweek.com/articles/2013-05-02/disclosed-the-pay-gap-between-ceos-and-employees
http://www.brookings.edu/research/papers/2013/03/18-executive-compensation-polsky-lund
http://go.bloomberg.com/multimedia/ceo-pay-ratio/

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