Economic Development Futures Journal

Thursday, July 06, 2006

counter statistics

CEO Pay-to-Minimum Wage Ratio Soars

In 2005, an average Chief Executive Officer (CEO) was paid 821 times as much as a minimum wage earner, who earns just $5.15 per hour. An average CEO earns more before lunchtime on the very first day of work in the year than a minimum wage worker earns all year.

The chart to the left shows the ratio of the average annual compensation of CEOs—including all bonuses, incentives, and so on*—to the annual compensation of a full-time, full-year minimum wage earner (assumed to receive an average amount of benefits).

Source: Economic Policy Institute

posted by Don Iannone, D.Div., Ph.D. at Thursday, July 06, 2006

4 Comments:

  • Could there be another way? One that, if properly, meaningfully, and a bit ego-lessly embraced by a few brave organizations and collaboratives could effect dramatic social change? Perhaps if people considered embracing authenticity and servant leadership and bottom-up, grassroots empowerment..

    By Anonymous Anonymous, at 8:51 PM  

  • Anonymous,

    Yes, there is another way. Thank you. One suggestion is to focus economic development efforts on real wealth building by average folks through entrepreneurship. It will take a cultural shift in how we see work though.

    I like your suggestions. Please say more.

    Don

    By Blogger Don Iannone, D.Div., Ph.D., at 1:59 AM  

  • Capitalist Cleveland blog is with you all the way on that, Don. We're all about encouraging entrepreneurs--incipient and otherwise. I'd guess the world has changed enough to warrant maybe 25% of those rasies (see my speculations about why), but the 821 times is most likely because they just need the money to be at the top these days... " )

    By Blogger Barbara Payne, at 3:20 PM  

  • Thanks Barbara. Hope you're enjoying Chicago.

    By Blogger Don Iannone, D.Div., Ph.D., at 5:01 PM  

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