Thursday, September 2, 2010

How Much Do Tou Make?

Here's an interesting tidbit for you to chew on. The average total income and benefits package for the CEO of the largest 500 companies in the country is $7.5 million per year. That's not the total for all of the top execs. That's just one person. On the other hand the average total package for regular employees is $36,000 per year, and that includes benefits. So class, how many times can you divide $36,000 into $7.5 million? Answer? A whole lot. But Corporate lawyers are saying that "it would be unfairly complex to calculate and could encourage false comparisons". Is that right? Could it encourage false comparisons? Would anyone need to falsely compare if they're getting $36,000 and the boss is getting $7 and a half mil? To tell you the truth, I don't think that's a very good comparison. Don't get me wrong, I think the boss should get more. A lot more. After all, he (or she) is responsible for keeping the company going so the rest have jobs. But once you've said that, that's all the boss is worth. So, what's a fair ratio? I suppose it should be a floating number. Very large companies should carry a larger number then small ones, but 208 to one? Is that a good number? At that rate, it's clear why folks find it so hard to get a raise. The raises all go to the boss. And ya know what? That's only an average. That means that some CEOs are getting a whole lot more. I suspect the ones getting a whole lot less aren't doing a very good job. Or will be renegotiating as soon as they hear about this.

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