There are stars and clucks in every job and at every level, but no star in any high position is worth over a hundred times the value of a star in any lower position. With clucks, those in the highest levels are probably at least a hundred times more damaging than those at the bottom levels. Fifty years ago, Robert Townsend, as CEO of AVIS, made it a practice to not be paid more than fifty times what the lowest employee was paid. It didn’t destroy his drive to do a good job.
Over one hundred years ago, J.P. Morgan, the man not the firm, would not loan to companies headed by executives making more than 20 times the lowest paid worker.
In current times, in Britain, Fat Cat Tuesday was on the second working day of 2016. That was when the top CEOs had earned as much as the average worker would earn in a year. In Canada it happened on Monday, the first working day of the year.
In the U.S., according to the Glassdoor Economic Research Blog, the “Average CEO Earns 204 Times Median Worker Pay” (by Dr. Andrew Chamberlain | August 25, 2015) and here’s the top CEO picture as taken from the NPR website:
Companies With The Highest Ratio Of CEO Pay To Worker Pay
Among companies in the S&P 500, according to an analysis by Glassdoor
|RANK||EMPLOYER||2014 CEO||CEO PAY||MEDIAN WORKER PAY||RATIO|
|1||Discovery Comm.||David M. Zaslav||$156,077,912||$80,000||1,951|
|3||CVS Health||Larry J. Merlo||$32,350,733||$27,139||1,192|
|4||Walmart||C. Douglas McMillon||$25,592,938||$22,591||1,133|
|5||Target||Brian C. Cornell||$28,164,024||$30,000||939|
|6||CBS Corp||Leslie Moonves||$57,175,645||$66,365||862|
|7||Bed Bath & Beyond||Steven H. Temares||$19,116,040||$26,047||734|
|10||Starbucks||Howard D. Schultz||$21,466,454||$32,080||669|
No wonder the rich are getting richer, the poor are getting poorer, and the middle class is disappearing.