$374,800
That's what the average worker would be raking in if the ratio of CEO to worker pay was at the 1970 level here in 2006. Unfortunately, it isn't. That 28:1 ratio from 1970 has ballooned to 369:1.
Business Week has the blurb.
OCTOBER 30, 2006
THE BIG PICTURE
By David Henry
Worker vs. CEO Pay: Room To Run
Average annual CEO pay is $10.5 million, 369 times average worker pay of $28,310. In 1970, before the big runup, the multiple was 28:1, a ratio that would make today's average worker pay $374,800. Put another way: If CEO pay were frozen now, it would take workers 66 years of 4% annual raises to get back to 1/28th of what the boss makes.
Data: Kevin J. Murphy, University of Southern California; CEO pay rounded and based on S&P 500 companies; worker pay, Bureau of Labor Statistics; ratios rounded to nearest whole number
Business Week has the blurb.
OCTOBER 30, 2006
THE BIG PICTURE
By David Henry
Worker vs. CEO Pay: Room To Run
Average annual CEO pay is $10.5 million, 369 times average worker pay of $28,310. In 1970, before the big runup, the multiple was 28:1, a ratio that would make today's average worker pay $374,800. Put another way: If CEO pay were frozen now, it would take workers 66 years of 4% annual raises to get back to 1/28th of what the boss makes.
Data: Kevin J. Murphy, University of Southern California; CEO pay rounded and based on S&P 500 companies; worker pay, Bureau of Labor Statistics; ratios rounded to nearest whole number
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