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US CEO-Worker Pay Gap Is Widest In Developed World
Not too long ago we solved the mystery of America's missing wage growth by pointing to the fact that wage growth for the country's "non-supervisory" workers was in fact headed in the wrong direction, while America's bosses were seeing their pay increase. We went on to note that with the correlation between consumer spending and wage growth now nearly perfect, the US economy could well suffer given that non-supervisory workers account for four-fifths of total employment and consumer spending accounts for three fourths of GDP.
If you needed further evidence of the disparity in compensation for America's bosses versus what everyone else makes, look no further than the following chart from Bloomberg which shows that the pay gap between CEOs and workers is wider in America than in any other country in the developed world — and wider by a lot.
More from Bloomberg:
The CEOs of 350 Standard & Poor’s 500 companies made 331 times more than their employees in 2013, up from a ratio of 46-to-1 in 1983, according to the AFL-CIO. That’s more than twice the gap in Switzerland and Germany, and about 10 times bigger than in Austria. In Japan, CEOs make about 67 times more than workers (although the country’s highest-paid woman earns only 25 times more). Australian CEOs get 93 times more. A global Harvard Business School survey found that most people think pay gaps are far smaller than they are. That was particularly true in the U.S., where survey respondents thought the ratio of CEO to average worker pay was 30 to 1; they put the ideal ratio at 7 to 1.
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Fire the boss, it's not like he started the company or anything!
That might depend on the company, don't cha think? Nahh, let's be stupid fucks and give GM another bailout.
asshat.
Hope and change. Just not for you.
CEO has lots of hope and the worker, well, the pocket change
I didn't know there were any companies left in America that could afford pay a CEO let alone a 'worker'.
Correct me here, but aren't all the money grubbing making American companies in China? or Ireland? Certainly these CEOs live there...... where the company is. They don't pay taxes, so they can't be living in the USA.
You can thank those 401k and other 'retirement' funds for this mess of financing the death of the American worker. I don't hear a damn word from one person who has a 'retirement' fund complaining that their pay is going down while their 'retirement' fund goes up with this 'market' we observe. Invest in tech, robots, etc yep....and wonder why unemployment is still going up. Look out Europe, you are next.
Me...no retirement fund, no debt either.
And the answer will be, raise taxes on married couples making $250k/year because they are RRRRRIIIICCCCHHH!!! As if they live like Warren Buffet and Bill Gates.
Edit addition:
We need to pay these CEO's big money so they don't go to the government sector, and the government needs to pay their people more so they don't go over to the private sector. In the case of Minnesota, where I live, the governor raised the salaries of the department commissioners from 19-58% to keep them from going to LOCAL GOVERNMENTS--not even the private sector. Now we have governments handing out raises to one up each other on salaries---all on the back of the people who are doing the REAL work, the taxpayer.
Source: AFL-CIO
Seems legit. Fucking LOL.
The way it works nowadays, the CEO selects the board of directors and they, in turn, decides the CEO's pay....simple....
being part of the "developed world" means going to work at 3 part time jobs to pay down rediculous amounts of debt, watching whatever brand of singing/dancing reality TV _____Idol competition your corrupt media decides to force on you, and eating your hormone/antibiotic laced GMO cholesterol fast food dinner. but hey atleast we can vote, right?
sure, the gap looks bad.
fair enough.
however, you're comparing apples to oranges.
if you look at, say, the warlords of afganistan or sierra leone, you'll see gaps that are significantly larger
there's still a long way to go to catch up with aspirational peers
vote... and apparently you can vote multiple times. It's all the rage
CEOs should never pick the boards or even be members of the boards of directors. The CEO needs to be held accountable by someone.
QE for the Rich, negative interest rates for the poor!
https://www.youtube.com/watch?v=5aHBI4gxoYM
God's work aint cheap bitches.
Till one day one guy owns it all... while the rest of us are grateful to live under a leaky tin roof in shot down shack.
Is that God's plan?
Must be since in most places on Earth and throughout history that's how it's always been. The America of old is a footnote on the human history timeline. We are just reverting back to the norm now.
How many are founders? Most are Ivy League douchebags who look good in a suit. And a full 10% are named Mike or John. America, land of diversity!
What brought the company I worked for down was the bosses' son. They merged 3 times with smaller companies over 3 years and each time brought aboard the administration. So in the end we had around 5 bosses all sitting around on their fat asses taking up space and profits, not doing much else.
Power and control is never willingly given up and absolute power corrupts, absolutely.
same as it ever was...
Even so, the G.I. Generation's business and government Elite in the US generally tried, with some sincerity and integrity, to improve the status of everyone in the nation, and improve the status of the nation within the world.
This current generation of greedy, shallow, narcissistic leaders, almost without exception, will gladly rape everyone and everything they can if it might increase their personal net worth.
What are the sector %'s? I'd think Dimon makes a lot more than 331 times his grunts.
I've always had a CEO makes at least 100x's more than me wherever I worked.
But hey, unions don't help workers, right?
Sure, unions help workers - the question is, which workers, and at whose expense?
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USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA USA If you don't like it you can get out.
Dual citizenship has it's perks...
...so does a good tax attorney.
Mark to fantasy forever!!!
zirp
you are a mouth foaming tard
Communist applauded when the sign came up. What's gone is constructive criticism. Our writers of the constitution didn't intend for us to get involved of overseas wars for the sake of oil.
If these countries didn't have oil it would be on the back pages of the newspaper.
Calm down, what would big corporations be without hush money?
It's actually probably much worse than the chart indicates for many reasons.
The CEO typically has a much more robust benefits package. Some of these benefits are vested for years, even for life.
The CEO typically walks with a golden parachute of compensation. The pension is basically in hand before they walk away.
Many lower level employees will put in years or decades and still get stiffed by under-funded defined plans or underperforming 401ks, etc..
CEOs are expensive but they're worth every million; look how they turned around Radio Shack, JCP, MFGlobal, Lucent, Countrywide, The Reserve Fund, Lehman, and the list goes on.
Oh yeah, and those Golden Parachutes:
http://content.time.com/time/specials/packages/completelist/0,29569,1848...
GE's Jack Welch tops list with $400M exithttp://investorplace.com/2012/01/ceo-golden-parachute-executive-compensa...
Oh yeah, let us not forget the stock options and bonuses based on short term growth!
Who's expense is that? Well, lack of structural growth means lack of job advancement/or even continued employment and new jobs. It's also causing volatility to the stock holders-mostly ppl in the 401k and retirement savings market (who are in this long term thanks to withdrawl penalties and taxation for early withdrawl). And I'm talking infastructure here reinvested into company from profits instead of reinvested into stock to make phoney profits for number padding, bonuses, bragging rights prior to jumping ship, and "confidence". This is one of the many catalysts that will cause a market crash. Reinvesting into a company's infastructure takes time to reap benefits, but we continue to see dollar signs in the eyes instead of wisdom. We've seen the lack of investment to infastructure due to short term greed from CEO's instead of a long term advantagous position for all parties including employees and STAKEHOLDERS instead of "stockholders". Also, CEO's are doing a pisspoor job investing into research and development. No sir, we are looking at short term growth here.
its not that bad if you use common core math... dey took er derrs!!!!
1+1 = Jello
Lloyd and Jamie cannot be pleased that this is NOT much much wider.
Yah well nothing pays for the insiders like massive failure. The whole system is screwed up from the get go with our non-secured lending as currency scams.
Meh. I gots my Obamaphone, Obamacare, Obamamortgage, Obamamobile loan, Obama student loan, and ObamaSNAP. Why does I cares if sum big boss man makes billions to destroys a company and a cuntry?
For that reason I emigrated to the US from Europe. Now I reap the benefits of my hard work.
. Duplicate post, sorry.
We have to become competitive with the rest of the world in labor costs--and that includes CEO costs. We hear that with the issue of territorial corporate taxation. It applies equally to labor costs. Our companies can't compete with foreign competitors paying their CEOs less than we pay ours. Getting our CEO costs in line with the rest of the world will help American companies compete!
I mean, we are serious about this, aren't we? We do seem sooo serious when it comes to corporate taxes. So let's march farward into the bright future of competitive American businesses!
The public equity market is dead. It does not provide effective oversight mechanism for equity owners. It does not align interests between owners and agents. In fact, it guarantees the company will be run for the benefit of management, to the determinent of owners, employees, clients and vendors. And then we act surprised when it is.
The management of publicly traded companies harvest shareholder capital, among other assets, in order to enrich themselves. This is reality, rather than ideaology...
Word.
great comment. and much like the mechanism by which that value is "priced"... full faith and credit...
Such "let the majority eat cake" monetary experiments have been tried before, this one will end no differently...
This is what fuedalism looks like.
I wonder what this chart would look like if you overlaid a chart of QE as a percentage of the economy???
good test for the trickle down theory ...
yes they really are just that much damn better than you /s
if you were to believe ken lay's testimony ... the janitor at enron knew more about the company than he did ... despite pulling down $25 million/year
How else are these hard working gentlemen supposed to afford $86,000 rugs for their offices?
And do not forget that many of these managers have their bonuses directly tied to the stock prices. They simply borrow a ton of cash at 0% interest, buyback hundreds of thousands of their own shares, and POOOOOOF!!!! They get a massive cash bonus as the stock price 'soars' based on nothing tangible other than the price being manipulated. Screw everyone else! Assholes!
If you want to see truly staggering gaps between CEO's and workers, look to the developing world, including the BRICS. US doesn't look too bad in that context.
So what. What's the point?
how about pro athletes vs the hot dog vendor
I love capitalism!
this ain't capitalism...this is brazen cronyism
the CEO's donate a lot more to Obama than the workers!
Never before in the history of the USA has the gap widened more than under Obama.
I have often pondered the idea of tying the pay of the CEO or president to that of the lowest paid worker in the company (including contract workers). I have mixed feelings on this. While I am for a person making as much money as they can, I have to wonder.
For example, maybe something like the CEO only making 50 times in earnings (salary, stock, stock options, bonuses) then the lowest paid person like the custodian. But it seems anti freedom to cap a persons earnings.
Thus in a company where a CEO is making $1,000,000 in total compensation, the custodian would have to earn at least $20k. Obviously the CEO should make more because more responsibility and education. Anyway, just an idea and I welcome your suggestions.
What really bothers me are these golden parachutes that top execs get. That needs to be done away with totally.
My message to the workers:
If you don't like what your current labor market value is as measured by compensation,
then improve your value to employers through education, training, skills development, certifications, etc, so that you can compete for higher-paying jobs.
OR
Start your own business and be the CEO.
But you losers will just keep on whining and whining, and whining, ad infinitum.
Don't you have rectums to investigate?
I am examining one right now, the one between your eyes.