How many days in a year? Three hundred sixty five. How many worker salaries fit in one CEO's pay? Three hundred sixty four. Meaning that by the end of this day, there is a chance your CEO has made the equivalent of your yearly salary. He (less so she) is also making one of your year's salary on Saturdays and Sundays. Sweet!Indeed, the CEO-to-worker pay gap is enormous. According to a new report by the Institute for Policy Studies and United for a Fair Economy, the average CEO of a large U.S. company made roughly $10.8 million last year, 364 times that of the average U.S. full-time and part-time worker salary of $29,544. Looking only at full-time workers, including benefits, CEOs made only 270 times the average $40,000 pay. But don't you worry about them, this still doesn't include perks and pension benefits CEOs get. If it sounds excessive, that's because it is, especially if you consider that in 1989 CEOs earned 71 times the average worker pay.
An interesting anecdote from this IPS/UFE report shows that the pay of the 20 top U.S. CEOs was 204 times that of the 20 highest paid U.S. military generals, 38 times that of the 20 highest-paid non-profit leaders, and three times that of the top 20 CEOs of European companies with higher sales than their U.S counterparts.
But the average Joe can gloat. Those CEOs who make your yearly salary in a day probably also feel on the short end of the stick when their salaries are compared to private equity and hedge fund managers pay. These guys made an average of $657.5 million in 2006, about 61 times the average CEO pay and more than 16,000 times the average full-time worker pay.
Let's see, with 31,556,926 seconds in a year, these managers make your yearly salary each half hour (roughly) that passes in a day -- including sleep time!











Reader Comments (Page 1 of 3)
8-30-2007 @ 12:23PM
Mort said...
CEOs and many people in money management are GROSSLY overpaid. Obscene pay...
I hope the mortgage and creedit crunch squeezes hell out of many of them...and the Fed doesn't ride to their rescue!
8-31-2007 @ 11:27AM
tiana said...
Thats America for you. I'm now determined to become a CEO. I first read about this on GlobalGrind.com's News Feed. Check it out. They have a great article on this.
9-01-2007 @ 1:18AM
jmdorf said...
Although not poor by any standard, physicians are available 24/7/365. And there are other occupations that also offer that availability and service. Is Steve Jobs et. al. that available? And if I have an off day at the hospital, what happens...someone may die. What happens if Steve Jobs has an off day...a deal goes bad??? The salaries of CEOs and professional athletes needs to be reigned in.
9-01-2007 @ 10:56AM
bmelonas37 said...
CEOs are worth every penny. Remember, they are highly educated, always make the right decisions, are good listeners and honest. A guard at the meetings of generals found a pen without an eraser. Before the meeting got under way, he went on stage and asked does this pen belong to anyone in this room. A general replied, it’s mine. The general thanked the guard, then asked, how did you know it belonged to a general. The guard replied, it did not have an eraser and generals don’t make mistakes.
9-04-2007 @ 2:28PM
msxymf said...
all this article did is make me MAD AS HELL!!! i don't have a prob with reality but COME ON!!! I make 40K, struggle with cc debt currently, taking care of my fam and have to many things to catch up to, i refuse to share the thoughts that run thru my mind cuz of this madness and now this!!! i work for corporate america and want to get out!! to add on to this, i am currently working for a company and have been there for a year now since march, got evaluated in june and won't get my increase til sept!!! try to tell that to a ceo that he has to wait for his money!!! that is unheard off but a regular jane like me, who cares!!! yeah, i agree, alot of the perks that these people get need to be reevaluated cuz they are no better than anyone else!!!
9-30-2007 @ 11:44PM
Jeff said...
Do you want to save your company millions of dollars?Outsource your CEO.
9-05-2007 @ 12:47PM
terry said...
hahahahaha, love comment #6!!!!!!! that's real talk there!!!!
9-04-2007 @ 2:42PM
geldonski said...
One of these days the workers will realize once again how valuable labor unions truely are. What goes around comes around. It was these same CEO's that have helped retard the labor movement in this country. But have no fear, unions will be back. And this time they will be bigger and better than ever before. The little guy will once again realize that the only way to up-grade their life's financially is through collective bargining.
9-04-2007 @ 8:04PM
EMily said...
I love #6 too, the trouble is they will outsource my husband's job first and leave us homeless before they outsource the damn CEO in his company. THe CEO is famous for outsourcing jobs and saving the company money
9-04-2007 @ 3:25PM
krdf4 said...
Like polititians, these people are not only overpaid but over rated.
9-04-2007 @ 3:41PM
The Truth said...
The salaries and perks are obscene, but it's a bitl surprising when you know who decides what senior executives make. It's a board of their counterparts at other companies. They all grouse about how hard they work and then they all give each other big raises and perks, so they'll get them back in return. Cops protect each other, doctors protect each other, politicians all vote for raises for each other and senior executives protect each other's pay so their own isn't cut. "You scratch my back and I'll scratch yours". The company did poorly? Well then, we need to cut some workers and cut the remaining workers' pay and benefits. I of course as the person making all those hard decisions to cut workers, need to get a raise. Most of them are greedy, selfish pricks.
9-04-2007 @ 3:41PM
BigBird said...
Maybe it is time to form new unions, support the ones we have and buy union made goods? I hope you enjoyed your Labor Day.
9-04-2007 @ 3:48PM
The Truth said...
I meant "it's not a bit surprising"....
9-04-2007 @ 3:58PM
JEAN said...
DONT YOU ALL RELIZE THE LOWER SALARY PEOPLE
DO ALL THE WORK WHILE THEY GET THE MONEY AND GLORY. AND WE LET IT HAPPEN. THIS COUNTRY NEEDS TO WAKE UP AND LET THE MIDDLE
CLASS RULE FOR THE CENTURY
9-04-2007 @ 4:01PM
Ryan said...
Why shouldn't they make that much money? They're guiding and directing the company as to where it needs to go. The better they are at their job, the better the company will do. If you didn't get paid a lot of money as a CEO, what would your motivation be to do a good job? This is a capitalist society. If you want equal pay and communism, move to Russia or North Korea or somewhere else.
9-04-2007 @ 4:00PM
BigBird said...
Form unions, this is what they try to combat. Support other unions, you need allies. Buy union made goods, the job you save may be your own. In solidarity Eric
9-04-2007 @ 4:07PM
Hawnravguy said...
The only way to fight this kind of gross injustice is to NOT give your business to companies that participate in this kind of behavior. DON'T invest your money in hedge funds. In fact, the stock market is so rigged you're safer keeping your money out of it completely. And DON'T shop at places like Wal-mart that outsource manufacturing jobs to countries with cheap labor in the sake of profit. If we want to do something about this, we need to be saavy and smart consumers. Buy American made products from small local businesses. Support companies that make not only fiscally responsible decisions but also socially, environmentally, and politically smart ones too. We're in this together and need to start using something that seems to have disappeared from the American landscape-COMMON SENSE!
9-04-2007 @ 4:16PM
JEAN said...
I TRULY CANT BELIEVE THAT WE AMERICAN'S CONTINUE TO PUT UP WITH CORPORATE AMRERICA
WE ARE NO BETTER OFF THAN IN A COMMUNIST COUNTRY BEING CONTROLLED BY CORPORATIONS
WE THE SLAVES WORK AND THEY GET THE PAY OFF
RETIREMENT NO SUCH THING IN THIS TIME AND DAY
WHATS GOING TO HAPPEN TO OUR KIDS THEY ARE REALLY GOING TO HAVE IT BAD WONT BE ABLE TO EVEN OWN A HOME. THE WEALTHLY PEOPLE IN THIS COUNTRY NEED TO FALL WE NEED ANOTHER CRASH JUST LIKE IN 1929 THEN LETS SEE WHO IS THE WINNER IN ALL OF THIS. I FEEL LIKE THIS COUNTRY HAS GONE BACK IN TIME TO THE PLANTATION DAYS WE ARE ALL THE SLAVES AND
CORPORATION ARE OUR OWNERS WE NEED TO
TAKE OUR LIVES BACK (THEY DONT WANT US TO HAVE VACATIONS OR HOLIDAYS YET THEY TAKE OFF ALL THE TIME) GUESS I WILL HAVE TO WORK TILL THE DAY I DIE WHILE THE CEO/CFO GET THE
TIME OFF
HAHAHAHAHAHAHAHAHAH CORPORATE AMERICA WINS AGAIN
9-04-2007 @ 4:23PM
gbaile1 said...
I agree with number 12, CEO pay is a direct result of value added to the company. Sounds like most of you people think they just pull some random number out of a hat, get real. If those guys don't make a return for the company they get fired pretty quick or don't get to exercise options which is where most of their pay comes from. Which reminds me, most of their earnings are on paper and not actual cash(meaning they don't get a check for 200k each week). If you want to make more money get educated and work hard, that is what America was built on.
9-04-2007 @ 4:52PM
Jaymie said...
Wrong,Wrong,Wrong #'s 12 and 15 Do you not read. Many of the companys with large CEO pay do not make their quarterly numbers and if you follow the pay many times it is several million and the stock and other perks are on top of that multi - million dollar salary. Also #15 I don't know what country your talking about but as far as what this country was built on, many of the small companys and people moving into middle class from the turn of the century until the 1960s maybe 70s were not all people with degrees. I know, I was raised by a man with an 8th grade education and lived in S.F. most expensive area also had greatgrands that immigrated and did very well. You are very missinformed about who built this country.