One thing that I think adds an interesting dynamic to this question is the fact that the countries with the best compensated CEOs also rank among the least corrupt in the public sector. I was unable to find a separate ranking for the private sector, but do you think it would show anything different?
I agree I think it is interesting that the countries with the highest paid CEOs ranks as the least corrupt in the public sector, however I think that the rankings would be drastically for the private sector. I feel that countries with higher paid CEOs would rank higher in terms of corruption in the private sector.
I would like to see a more detailed break down. From some preliminary research I found that most of the Global Fortune 500 companies are headquartered in the United States. I wonder if revenue of these companies has anything to do with CEO pay. If a company is larger I would imagine the CEO would get paid more. This among many other possible variables could explain the "CEO salary gap" is bigger in the United States.
If you scroll half way down this article there is a graph on the pay gap per industry that is really interesting to look at. This graph only shows S&P 500 companies so this does not represent every company. However, even the smallest gap which is in the mineral industry has a large gap at over 100 times different.
For me the more striking data is the graph showing the ratio between CEO and average worker pay. It's something I mentioned at the end of class yesterday, where I just can't decide whether or not I think it's fair for one person to make so much more than another. In the US, the average fortune 500 CEO makes 354 times more than the average worker at their company. As the article states: "An analysis from last year estimated that it takes the typical worker at both McDonald's and Starbucks more than six months to earn what each company's CEO makes in a single hour" I mean, I get it. These are two of the biggest companies in the world. I think their paycheck should probably be in the millions. They have thousands and thousands of locations, and most of the workers are probably entry level. But still, is the CEO really 354 times more productive? I doubt it. Like I said, I can't make up my mind. It's just hard to swallow when I think about the amount of time and effort one employee puts in during an entire year, and knowing another person makes their salary in two hours.
One thing that I think adds an interesting dynamic to this question is the fact that the countries with the best compensated CEOs also rank among the least corrupt in the public sector. I was unable to find a separate ranking for the private sector, but do you think it would show anything different?
ReplyDeleteI agree I think it is interesting that the countries with the highest paid CEOs ranks as the least corrupt in the public sector, however I think that the rankings would be drastically for the private sector. I feel that countries with higher paid CEOs would rank higher in terms of corruption in the private sector.
DeleteI would like to see a more detailed break down. From some preliminary research I found that most of the Global Fortune 500 companies are headquartered in the United States. I wonder if revenue of these companies has anything to do with CEO pay. If a company is larger I would imagine the CEO would get paid more. This among many other possible variables could explain the "CEO salary gap" is bigger in the United States.
ReplyDeletehttp://www.bloomberg.com/news/articles/2013-05-02/disclosed-the-pay-gap-between-ceos-and-employees
ReplyDeleteIf you scroll half way down this article there is a graph on the pay gap per industry that is really interesting to look at. This graph only shows S&P 500 companies so this does not represent every company. However, even the smallest gap which is in the mineral industry has a large gap at over 100 times different.
For me the more striking data is the graph showing the ratio between CEO and average worker pay. It's something I mentioned at the end of class yesterday, where I just can't decide whether or not I think it's fair for one person to make so much more than another. In the US, the average fortune 500 CEO makes 354 times more than the average worker at their company. As the article states:
ReplyDelete"An analysis from last year estimated that it takes the typical worker at both McDonald's and Starbucks more than six months to earn what each company's CEO makes in a single hour"
I mean, I get it. These are two of the biggest companies in the world. I think their paycheck should probably be in the millions. They have thousands and thousands of locations, and most of the workers are probably entry level. But still, is the CEO really 354 times more productive? I doubt it. Like I said, I can't make up my mind. It's just hard to swallow when I think about the amount of time and effort one employee puts in during an entire year, and knowing another person makes their salary in two hours.