Monday, May 27, 2019

Economic inequality hits all time high in America

The economic divide between CEOs and their workers continues to get larger, reports the NY Times in It’s Never Been Easier to Be a C.E.O., and the Pay Keeps Rising. Here’s the short version.

Something about this feels inevitable. Every year, Equilar, an executive compensation consulting firm, conducts a survey for The New York Times of the 200 highest-paid chief executives in America. And nearly every year, C.E.O.s already earning huge sums get even bigger payouts. In 2018, our analysis shows, they did particularly well: The median boss received compensation of $18.6 million — a raise of $1.1 million, or 6.3 percent, from the year prior.

Assuming a work week of 40 hours and 50 weeks, a raise of $1,100,000 equals $550 per hour. In contrast:

C.E.O. pay increased at almost twice the rate of ordinary wages. In 2018 — a pretty good year for the labor market — the average American private-sector worker got a 3.2 percent raise, or an extra 84 cents per hour.

Another way of looking at it is that in America’s corporate culture, the average CEO is worth 655 times the average worker.

For more check out the interactive graphic.

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