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!
Mark Zuckerberg and Priscilla Chan: A Romantic Facebook Timeline
Why Facebook's Falling Share Price Really Doesn't Matter


Reader Comments (Page 3 of 3)
9-04-2007 @ 8:04PM
gus said...
its take 2 people 2 jobs each to make ends meet today?? why??
9-04-2007 @ 8:11PM
REVOLTING said...
YOU ALL HAVE BIG MOUTHS TO BAD YOU ALL DONT HAVE BIG ENOUGH BA**S IF EVERYBODY JUST ALL OF USUDDEN TOOK A DAY OFF AND I MEAN EVERYBODY WHAT ARE THEY GOING TO DO FIRE EVERYBODY
POWER OF THE PEOPLE FOR THE PEOPLE AS ONE
9-04-2007 @ 8:12PM
Heather said...
OK #5...Most of the CEOs in our country started exactly where you did. My father is a president and CEO and started his company when he was 22 and practically living in a box. He doesn't make nearly as much as those CEOs do but without ppl like that a lot of people like you wouldn't even have a job. BTW his company has NO UNION and his employees are amongst the happiest I know and very well taken care of. Most of America's CEOs are blood sucking and overpaid, but many are also creative, hard working innovators who deserve a little credit and the money that they EARN.
9-04-2007 @ 8:19PM
jim said...
#16 & 19, Are your serious? What country are you living in? Many CEOs work and work hard. This is about the excessive pay for minimal work, that seems to be so abusive today. And there are many. Wake up, you don't have to look far. Oil companies whose prices jump before a storm. Is that a great decision that some CEO should make millions on? A bank chairman who trades his options for a cool 8 million just before the announcement of involvement in the discount mortgage fall out? The decision now is to cut back the work force? This crap does effect you and me. By the way, CEOs will not be hurt or helped if the Government comes to the aid of the Mortgage Industry. As much as I am opposed to Unions, it is time to put some reasonable "watch dog" on many salaries, from CEOs, to Hedge Fund managers, to Athletes, plus a few others! Make the Union one of responsibility for all board members to demand equity throughout a Corporations pay roll or the board must suffer financially. Make board meetings public instead of just the once per year shareholder BS meeting. Union reps at a board meeting, that would be a sight!
9-04-2007 @ 8:40PM
Mike said...
No unions are not always the answer. The reason is that union leaders become just as greedy and dishonest as the company. Now they might get you higher pay but it does not affect the CEO's pay or even the boards. They just increase cost of the product and release people. This increases unemployment and decreases the power of the buying dollar. The way to change America is when someone of real value runs for public office; get out and vote for them. This needs to be done nation wide. Only through government, can we effect change. Another interesting note to pass on is that most of these people and their business pay less in taxes than you do in a year even though the tax laws are written to affect them and not the average working joe. But the tide is slowly starting to turn on this point. There have been several people who have been found innocent in a court of law from tax evasion. (Tom Cryer, Vernice Kuglin, and Bill Benson) It's time to stop viewing these people as tin hat wearing goofballs and understand that they really have done some research. Once we get into office we can implent the laws the way they were meant to be implemented. We can also end capitalism by ending the illegal and unconstitutional Federal Reserve Bank which runs the entire show. Instead of calling me a goof ball, do some research and read the constitution and history of Supreme Court Rulings. Enlighten yourself and then take action by your vote.
9-04-2007 @ 10:48PM
Jeff said...
I truly agree with #6, Outsourcing is the key nowadays. Why not outsource their positions as well.
Maybe the whole top executive group for that matter.
Think of the profit sharing that could be had by many instead of the few. Talk about incentive. Go GM be the first on the block. What, no balls?
9-04-2007 @ 10:57PM
Gary said...
CEO's and most other corporate executives are grossly overpaid in comparison to other equally talented scientists, engineers, managers and administrators and production personnel working within modern companies today. The members of their Boards of Directors that are supposed to represent the shareholders of these companies are out of touch with the real value these individuals represent to the organization versus the value of the other employees. Stop buying stock in companies that reward their executives with such outrageous compensation packages, they are not worth it.
9-05-2007 @ 11:22AM
Robert said...
I have read many ridiculous post here regarding unacceptable CEO pay. They are the superstars of business. If compared to sports, I would think they are underpaid. Nothing worse than an average CEO that potentially loses billions in shareholder value, however they don't last long. It's the CEOs that create billions in shareholder wealth that earn it and deserve it. So many complainers out there...probably why they are broke!
9-05-2007 @ 12:35PM
Jack said...
When the CEO is also the CHAIRMAN of the BOARD, they are by definition a person conflicted!! Image a Chairman of the Board deciding that the CEO needs to be replaced and he is the CEO.
Most members of a company’s board are or have been executives of other companies. They have similar interest that is maintaining and advancing their own take.
The solution is to ban anyone being both the CEO and CHAIRMAN of the BOARD of any publicly traded Corporation.
Please note there is a huge difference between an ENTREPRENEUR founding a company and a more or less bureaucrat coming in and taking what ever they can from a publicly traded company