My @Quora answer to Why do large US corporations no longer believe in paying more than minimal wages and benefits to… http://www.quora.com/Why-do-large-US-corporations-no-longer-believe-in-paying-more-than-minimal-wages-and-benefits-to-US-workers/answer/Kris-Rosvold-1?srid=X0qr&share=1
See Original post for missing charts.
This is a topic I’ve considered over the decades and watched become increasingly worse as I get older.
What is the driver behind the US Race To The Bottom in wages for the vast majority of workers?
One word: GREED
Pure, unadulterated, greed; with precisely ZERO regard, or care for, the costs to our society, our Nation, or our Citizens.
Over the past 4 decades the US ratio of CEO, CFO, and Board incomes, relative to median (not the janitors, but the median wage) employee income have consistently risen from a 1980 low of 40:1 to a current ratio of between 160:1 and 1795:1 in 2012 ….!!
And you WONDER why it’s an increasing struggle in the USA to pay the bills each month??!
Here is an interesting little interactive map of the issue:
CEO-to-Worker Pay Ratios Around the World
Backup Data for my assertion:
CEO Pay 1,795-to-1 Multiple of Wages Skirts U.S. Law
“These multiples are based on CEO pay for either the fiscal year ending in 2011 or 2012, as disclosed in the companies’ most recent filings before noon on March 26. Because most companies don’t disclose their average workers’ pay, Bloomberg used U.S. government data on worker compensation by industry. The average ratio for the S&P 500 companies is up from 170 in 2009, when the financial crisis reduced many compensation packages. Estimates by academics and trade-union groups put the number at 20-to-1 in the 1950s, rising to 42-to-1 in 1980 and 120-to-1 by 2000.”
CEO to Employee salary ratio
The median CEO salary of $9.587 million:
HOW LONG IT TAKES OTHERS TO MAKE THAT MUCH: A minimum wage worker would have to work 636 years to make that much. A person making the national average salary would have to work 244 years to make the median CEO salary.
BY THE HOUR: If you assume the CEO works a 60-hour week, the pay comes to $3,072.84 per hour, or $51.21 per minute. To put that in perspective, the minimum wage worker would have to labor more than 10 weeks to make what the median CEO earns in an hour. It would take the average U.S. worker nearly a month to make what the average CEO makes in an hour.
COMPARED WITH AMERICA’S CEO: The CEO who made the median salary took in 12 times the total $789,674 in gross income that President Obama reported last year. But it is less than half the $20.9 million in income that presumptive Republican nominee Mitt Romney reported in his tax filing.
0Fortune 500 2012 – CEO pay vs. our salaries – FORTUNE on CNNMoney.com
Fortune 100’s CEO to Employee Incomes Compared
Top CEO Pay Ratios Bloomberg
HERE’S and interesting little comparison:
CEO Pay Exceeds Tax Bill at Major Corporations
AND: THE TRUTH ABOUT THE ECONOMY: In the 1980s, Greed WAS Good… Then We Went Overboard
So, PLEASE, all you CEOs, tell me all about how “It’s not GREED!
Here are the “reasons” (read excuses) that corporations don’t want to comply with the new SEC Regulations about wage disparity reporting (hint: it’s too much work is what they claim… the REAL answer is: “If our employees KNEW what we were doing while screwing them over; the hate letters to the executives of banks after the Bailout would look mild by comparison!”)
Corporate pay ratio plan proves divisive
We are NOT “broke”!! We ARE BEING ROBBED!!!
If you’re not outraged, you are not paying attention!