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Updated CEO pay OP: CEOs earn 3.8 times average worker
Posted on 10/2/14 at 4:58 pm
Posted on 10/2/14 at 4:58 pm
Is it too large, about right, or too small? What would be ideal?
What is the actual ratio of average worker to CEO pay? (cheating allowed)
Update: Bureau of Labor Statistics says the ratio is ~3.8 to 1.
Average CEO as of May 2013: $178,400
Average worker: $46,440
(Average is ~1.3 times the median for average worker, and ~1.04 times the median for chief execs.)
Was this close to anyone's perception of the disparity? I was under the impression that it was an order of magnitude larger. I certainly do not see a self-evident problem here.
What is the actual ratio of average worker to CEO pay? (cheating allowed)
Update: Bureau of Labor Statistics says the ratio is ~3.8 to 1.
Average CEO as of May 2013: $178,400
Average worker: $46,440
(Average is ~1.3 times the median for average worker, and ~1.04 times the median for chief execs.)
Was this close to anyone's perception of the disparity? I was under the impression that it was an order of magnitude larger. I certainly do not see a self-evident problem here.
This post was edited on 10/3/14 at 9:24 am
19
Posted on 10/2/14 at 5:00 pm to 90proofprofessional
It appears as though the gap has definitely gotten wider over the last 20 years, but what can we do about it other than to get the govt involved and force private businesses to make a pay scale?
Posted on 10/2/14 at 5:01 pm to 90proofprofessional
I think CEOs and workers should get as much money as they can get.
Unfortunetly, it all comes from the same pot.
To me, a great CEO is worth every penny. My problem is when a CEO comes in, screws everything up, the stock price drops by half, a bunch of people get laid off, and he leaves after 2 years with a bunch of millions.
Unfortunetly, it all comes from the same pot.
To me, a great CEO is worth every penny. My problem is when a CEO comes in, screws everything up, the stock price drops by half, a bunch of people get laid off, and he leaves after 2 years with a bunch of millions.
Posted on 10/2/14 at 5:03 pm to upgrayedd
quote:
but what can we do about it
we can definitely further alter their after-tax pay
Posted on 10/2/14 at 5:04 pm to LSUFanHouston
quote:
My problem is when a CEO comes in, screws everything up, the stock price drops by half, a bunch of people get laid off, and he leaves after 2 years with a bunch of millions.
When this happens, they just move on to be the CEO of the next company. Once you get in the CEO loop, you've got a golden parachute for life.
Posted on 10/2/14 at 5:04 pm to 90proofprofessional
Suspend too much time focused on my own family and our own finances to worry about what other people make or how they spend it.
Posted on 10/2/14 at 5:05 pm to upgrayedd
quote:
When this happens, they just move on to be the CEO of the next company. Once you get in the CEO loop, you've got a golden parachute for life.
Yup. Even crappy football coaches usually have to step down to a coordinator role for a few seasons.
Posted on 10/2/14 at 5:05 pm to LSUFanHouston
I have no problems with it. They are hell of a lot smarter and more talented than actors/actresses, and no one is whining about the pay gap there.
Companies are owned by shareholders, and the CEOs job is to maximize shareholder wealth, ifshareholders think the best way to do that is paying a CEO millions, then by all means, go right ahead.
Companies are owned by shareholders, and the CEOs job is to maximize shareholder wealth, ifshareholders think the best way to do that is paying a CEO millions, then by all means, go right ahead.
Posted on 10/2/14 at 5:06 pm to LSUFanHouston
quote:
I think CEOs and workers should get as much money as they can get.
Agreed - just like our Gov't. If they screw us and we do nothing, then we deserve it. People have a voice (ie. in this case shareholders) so quit bitching and do something about it if you have a problem.
Posted on 10/2/14 at 5:06 pm to 90proofprofessional
quote:
What would be ideal?
It would be ideal if people dropped the hubris that causes them to think they can determine these things better than the free market.
Posted on 10/2/14 at 5:12 pm to LSUFanHouston
quote:This. Most are overpaid for their "performance".
To me, a great CEO is worth every penny. My problem is when a CEO comes in, screws everything up, the stock price drops by half, a bunch of people get laid off, and he leaves after 2 years with a bunch of millions.
Posted on 10/2/14 at 5:12 pm to Stingray
OP updated with question on what the actual ratio is. Cheating ok.
Posted on 10/2/14 at 5:13 pm to 90proofprofessional
The pay ratio will continue to get out of whack. Low skilled workers just aren't needed as much. Robots will keep doing more work. So forget about income. Just measure our wealth in the things we are able to do as a society as a whole. More people fly today than ever before. More people vacation today than ever before. More hotels than ever before. More video games than ever before. Etc. We'll be fine if we don't let the jealous lead us toward destruction.
Posted on 10/2/14 at 5:24 pm to upgrayedd
You can convince other shareholders to before judicious with executive pay packages. No need to get the government involved.
Posted on 10/2/14 at 5:29 pm to C
I am as free market running dog capitalist as you can find and... yes... too many CEOs are earning salaries that are higher then their performance dictates.
I will now pause to allow those who want to scream "You dirty commie Basterd!"... and hopefully scream it while doing their best Jim Ross impression, do so.
A good CEO is worth his weight in gold. Most of us can agree on that. It is when someone comes in, shites the bed, gets a huge severance package, and then either retires to a life of ease or switches over to running another company into the ground that there is going to be some concern.
I think over the last few years stockholders, very reasonably, have begun getting a serious case of the red arse about paying through the nose for some jackass that managed to steer the company onto the rocks. There are, however, a great many skilled CEOs who do a good enough job that the parasites can flourish.
I will now pause to allow those who want to scream "You dirty commie Basterd!"... and hopefully scream it while doing their best Jim Ross impression, do so.
A good CEO is worth his weight in gold. Most of us can agree on that. It is when someone comes in, shites the bed, gets a huge severance package, and then either retires to a life of ease or switches over to running another company into the ground that there is going to be some concern.
I think over the last few years stockholders, very reasonably, have begun getting a serious case of the red arse about paying through the nose for some jackass that managed to steer the company onto the rocks. There are, however, a great many skilled CEOs who do a good enough job that the parasites can flourish.
Posted on 10/2/14 at 5:30 pm to 90proofprofessional
quote:Workers should worry about their own pay.
Politard poll: impressions on CEO/worker pay ratio in US
What difference does a CEO/worker pay ratio make?
Either workers are paid fairly, or they aren't.
WTF difference does it make if a CEO is making 3X or 10X or 100X or 100,000X std worker income, as long as workers are doing better than their piers? And if workers are not doing better than their piers, why would they not change jobs?
Posted on 10/2/14 at 5:36 pm to 90proofprofessional
Ratio? What makes you think some pay disparity ratio is meaningful other than as an economic policy propaganda tool to advocate for some lofty notion of the way things ought to be?
Posted on 10/2/14 at 5:40 pm to Willie Stroker
quote:
What makes you think some pay disparity ratio is meaningful other than as an economic policy propaganda tool to advocate for some lofty notion of the way things ought to be?
I'm just asking if the one we see now seems appropriate given the relative value of each.
I'm also curious about what the popular perception of that ratio is.
Aside, I'm a bit curious about what it means when I see posts like "I have no opinion on the question because the question is stupid." Does that mean "yes the ratio we see is appropriate" or "any ratio would be appropriate"?
Posted on 10/2/14 at 5:41 pm to NC_Tigah
quote:
WTF difference does it make if a CEO is making 3X or 10X or 100X or 100,000X std worker income, as long as workers are doing better than their piers?
Well, a dollar can only be spent once. In theory, every dollar of CEO pay can be spent on worker pay, right?
So let's say Joe CEO makes $10 mil a year at a company that pays avg workers 40K a year, and there are 100K workers. If we reduce Joe's pay to 500K a year, that's 9.5 million that can go to worker pay.
That means each worker would get an additional $95 per YEAR in wages. Woo hoo.
But remember, unions and democrats don't like math.
Posted on 10/2/14 at 5:51 pm to 90proofprofessional
The ratio will fluctuate relative to the success of the business model, no?
So the answer is yes. Whatever the ratio is at a given corporation, then that ratio is ok. If the ratio fluctuates over time, that's ok too.
So the answer is yes. Whatever the ratio is at a given corporation, then that ratio is ok. If the ratio fluctuates over time, that's ok too.
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