From: Inc.
Stand Out as a Leader By Bridging the CEO Pay Gap
October 30, 2014
Inc.:
Are CEOs are properly compensated, compared to unskilled workers? If you think so, you’re in the minority. That’s one takeaway from recent research by Chulalongkorn University’s Sorapop Kiatpongsan and Harvard Business School’s Michael Norton.
Their other key finding is a fascinating distillation of what people think CEOs should make compared to unskilled workers. Here are the numbers, according to Gretchen Gavett’s superb summary on the Harvard Business Review blog:
- US-based respondents to the survey Kiatpongsan and Norton used believe that, ideally, CEOs should earn 6.7 times what unskilled workers earn.
- The actual CEO-to-worker compensation ratio at US-based companies in the Fortune 500 is 354. That’s right: On average, Fortune 500 CEOs earn 354 times what unskilled workers at their companies do. In actual numbers, the average CEO compensation is $12,259,894, compared to $34,645 for the worker.
Read the whole story: Inc.
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