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Are CEOs worth 380 times what the average worker makes?

There's a pretty amazing viral video on the loose showing how wealth is distributed in this country. More than 3.5 million people have watched "Wealth Inequality in America" on YouTube so far. And one of the most striking statistics from the video is this: The average CEO makes 380 times what the average worker makes.

Are top executives worth that much? Leave a comment and tell us what you think.


A surprise viral hit: Income inequality, the movie
 Learn more about where the video came from and why it has gone viral.


 

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Analyzing CEO salaries as opposed to other company employees is a intellectually dishonest exercise. It leads people to think that CEOs should be paid minimum wage or something similar. What a load. visit software coupon http://softpromoz.com/ also promo code

First, they used salaries from the CEOs of about 300 Fortune 500 companies only, and then used average salaries of all people. Totally misleading.

Second, as an example: Jeff Immelt of GE in 2011 supposedly made about $21.5 million in total compensation. GE has roughly 300,000 employees. His salary may seem obscene, and maybe it is, but if they paid him $1.5 million and spread the extra $20 million to all the employees, you could give them all about $2.50 per check. It would only be about $67 per year.

In fact, most corporations that pay their CEO multiple millions employ massive amounts of people. So yes, their compensation packages are huge, but in most cases, those high packages have nothing to do with the income levels of the employees in those companies. As illustrated above, giving the CEO's compensation to all the employees would barely affect their take-home pay at all.

This is just more left-wing propaganda trying to make people think that their life is bad, because someone else's life is good. This is why capitalism suffers under an amoral society. Religious teachings tell you greed and envy are bad, but left-wing policies are often based on bringing out envy in society where people focus on trying to take from the haves instead of looking inward and trying to focus on becoming one.

I can't read a CEO pay story without thinking of one of my favorite Dilberts

http://www.youtube.com/watch?v=rpIa5LDk70M

CEO's deserve a good deal. They're the face that is answerable for the performance of their company including many things they can't control. But they don't deserve what they are making these days. No, a CEO is not worth 380 times the salary of an average employee at a large corporation. I believe it's a case of a runaway marketplace for CEO pay with no significant checks to limit the runaway compensation.

Shall we put industry/farming entitlements on the same chopping block add Medicare and Medicaid, cutting the corners evenly..this would be a good step. Mandating that of a corporation wants to enjoy the security of being an American Corp, 75-80 percent of the work force MUST be American citizens, another good step. Paring back CEO pay should be decided by shareholders of each corporation according to whatever metrics the shareholders decide.

Since the 1970's real income in the US has been dropping. People work longer hard to survive. Its a sad state in the US. People can change things. But 99% are too lazy to put real effort into what should be done. Write letters to CEO's. Ask them why they desreve so much and why you should buy the products and services from their companies. Boycott companies who have outragious ratios of CEO to hourly worker pay. Send them a letter and tell them why. Tell your representatives in government you dont want lip service anymore. You want change. Or you wont vote for them. You can live a quality life without supporting these companies. You dont have to shop at WalMart. You dont need a Nintendo or an iPad or whatever. You can spend more time getting involved in your local community. Its not socialism - its just the right thing to do.
There is zero logic to insane CEO pay levels. Companies who dont pay fair wages dont deserve my dollars.
Why not force companies to publish the pay scale or wage rates of thier employees? So consumers have a choice and support those companies who do pay fair wages. Is there a web page that does this?

Why does no one ask this same question about sports stars? I bet the towel washer isn't getting anywhere near 1/380th of what several of that team's stars are making. How is this OK but it isn't for a CEO?

Well there are several profound differences. First off, many athletes are involved in contact sports which can lead to injury or death which is unlike a CEO. Also, athletes careers are relatively short and they are forbidden from starting their own teams because they work for monopolies whereas a CEO would be able to start their own company if they wanted. CEOs also get stocks which can pay dividends for years and years. 70% of a NFL players are bankrupt within five years of leaving the NFL.

Much of what you are suggesting is absolute nonsense. The average tenure for CEOs is 3.4 years according to CEO magazine. CEOs can get fired for corporate non-performance, not just personal non-performance. There are very few athletes who die in sport, relative to the numbers that play. If dying in employment would justify getting paid more, how come marine lance corporals don't get $1,000,000 a year? It simply is not a justification. CEOs get stocks that they cannot trade for quite some time (lockups, golden handcuffs, etc), athletes can trade the same stock that CEOs can with few limitations.

Players have access to financial advisors, just as CEOs do. The fact that players are idiots who blow their money does not challenge the point of focusing only on CEOs. I think the bottom line is that CEOs are the easiest people to pick on because certain Americans hate business. What about celebrities that make millions for film? John Carey makes $20 million for a film that can be completed in 5-7 months, plus royalties. News anchors are another group - Katie Couric made over $9 million a year (before she left) to read into the camera. Let's look at Congress and the White House for an example of way compensated people: Dan Issa (R) is reportedly worth $700 million. Pretty hard to do that on a $175,000 or so salary unless you are taking bribes or kickbacks.

Analyzing CEO salaries as opposed to other company employees is a intellectually dishonest exercise. It leads people to think that CEOs should be paid minimum wage or something similar. What a load.

I'm a junior employee at a company where the CEO makes around 250x my income. His salary is not taxed as ordinary income; mine is.

What's that you're saying? You support me?! You agree that he should earn less and I should earn more?!?!

Sweet! Then you'll all sign my petition to double my salary from 850K to 1.7M, right?

Hello? Where'd everybody go?

Oh ... I see. :(

You don't actually care about income disparity between CEOs and employees. You just care about rich versus poor.

Sigh. For once I thought I actually had popular opinion on my side. :-\

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