In recent years, we have seen an explosion in the amount of pay given to company leaders vs. compensation given to their employees. In some countries, this ratio is capped. In Bush’s America, however, the apparent disregard for maintaining equity and a middle class seems to have taken over. Conde Nast Portfolio.com helps readers visualize the numbers in What Excessive Pay Package?
To spare any suspense, in 1970 U.S. CEO’s were paid 28 times more than the average worker. In 2005, it has increased to 465 times. Personally, I wish that our society would look down on people that seem to want or need ludicrous amounts of cash. Instead, we reward the same CEO’s that have caused the downfall of numerous companies and have led us to national crises such as the sub-prime mortgage situation. Perhaps if we gave all of our money to CEOs, there would be nothing left for them to lose?
Update (05/04/2008): A related story from ABC News, CEOs Rake It In When Their Companies Tank, provides some more statistics of how much CEOs (even the worst ones) make in income.