But Are We Ok?

First, I’d like to mention that CEOs have the responsibility to make their company a success – which is really hard to do. They usually have a board to answer to and leaders they didn’t hire trying to execute their vision. But, with that said, what the hell? In “2022, the ratio between CEO compensation at S&P 500 firms and average U.S. worker pay stood at 272-to-1, according to AFL-CIO analysis. The CEOs in this group averaged $16.7 million, while average worker pay stood at $61,900.” Pause for a moment to multiply your salary and equity by 272. Does that number seem appropriate?

In addition, CEO pay grew 1,460% since 1978. Now, accounting for inflation and for stupidly overpaid CEOs like Jeff Bezos, Mark Zuckerberg, and Elon Musk (who is currently pressing for a $47 Billion pay package), the data clearly indicates a significant discrepancy between average CEO pay and their top .1% workers. And don’t get me started on Steve Ballmer, a colossal flop of a CEO, who still gets $1 billion annually from Microsoft for doing nothing. Although, he does donate $45 million (less than 5%) to non-profits annually. So there’s that. Again, he does nothing. So there’s that, too.

---

Learning: If you are not one of the CEOs that’s benefiting from this discrepancy, we highly recommend the article The CEO Pay Problem and What We Can Do About It which has a few great ideas on what can be done to begin to resolve this.

References and Resources

The CEO Pay Problem and What We Can Do About It by Sarah Anderson, Institute for Policy Studies; Alan Barber, CPC Center; Type: Article

CEO pay has skyrocketed 1,460% since 1978 By Josh Bivens and Jori Kandra/Economic Policy Institute; Type: Article

Former Microsoft CEO Set To Earn $1 Billion A Year For Doing Nothing by World News; Type: Article

Tesla urges investors to get Elon Musk his $47 billion pay package by The Times of India; Type: Article