I worked in management of a national chain of retail stores. Our CEO bankrupted the company through stupid decisions. When we were broken up and bought out piecemeal, he walked with a multi-million dollar 'golden parachute'. Lower level managers like myself? I took a demotion and an $8,000/yr paycut!
From TheHill
The chief executives at the 350 largest companies in the United States reportedly earned 312 times more than their average employees last year, according to a new study released on Thursday.
Research carried out by the Economic Policy institute, a think tank based in Washington, showed chief executives at these companies received $18.9 million on average in 2017, which is a 17.6 percent increase from the previous year.
In the same amount of the time, the wages of average workers grew just 0.3 percent, according to the new study.
The median American household took home just over $59,000 in 2016, according to the U.S. Census Bureau. That figure was the highest ever measured and up 3.2 percent over the previous year.
The study also showed a dramatic increase in wages for chief executives in the past several decades.
The think tank pointed out in its study that the CEO-to-average-worker pay ratio in 1995 was 112-to-1, 58-to-1 in 1989, 30-to-1 in 1978, and 20-to-1 in 1965.
Then, in 2000, the ratio jumped to 344-to-1 and in 2017 the ratio it was 270-to-1.
"CEO compensation has grown far faster than stock prices or corporate profits," the institute said in its study. "CEO compensation rose by 979 percent [based on stock options granted] or 1,070 percent [based on stock options realized] between 1978 and 2017."
"CEO pay continues to be very, very high and has grown far faster in recent decades than typical worker pay," the institute continued in the study. "Higher CEO pay does not reflect correspondingly higher output or better firm performance. Exorbitant CEO pay therefore means that the fruits of economic growth are not going to ordinary workers."
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