How Many Workers Can You Save with the Salary of ONE CEO?


With the recession in recovery, but still hitting people's pockets and layoff still a reality do you ever sit back and ask what's happening at the TOP of this pyramid?

I know I sure do and I guess others have too I read a great article last week called, How many Workers can you hire for the price of one CEO? The article talks about the gap between the CEO salary and the entry-level workers hourly wage.

So how many more workers could each company have or save if they cut the salary of their CEO?

The CEO of JPMorgan made $35 million in 2008 in the height of the financial crisis, this year he was forced to take home only $1.3 million by external pressures to keep CEO compensation low. That could have hired new or not laid off 1039 employees since entry level salary is $31,200.


Here's another example: 
CVS CEO Thomas M. Ryan: $30.4 million (2009 Compensation)
Starting Cashier @ CVS stores: $8/hour, $20,800/year
One CEO = 1,461 entry-level employees
See full article from DailyFinance: http://srph.it/dyZFZD

Should there be a limit on CEO salary? If its their company, why shouldn't they make as much money as they want?

Employees all have choices, don't they? If you don't like how much you make you can always change companies right?

Should the CEO be sharing his wealth with his workers? How much conscious should he have towards the wealth-building of his employees?

If entry level positions like the cashier job at CVS paid more would there be lower turnover rates?and higher employee retention?

Tell me your thoughts.

xoxo
Carrie Pink
Pretty World Inc
Modern Day Supergirl

3 comments:

KP said...

Hmm.

I can honestly say that I am looking at this from both perspectives. As a former 'middle of the pyramid' worker, I can say that I would be annoyed at times when hearing about how much certain CEOs made.

And then I said, "well wait a minute. Why am I mad at them and not mad at me?"

Because the thing is, 7 out of 10 of those CEOs did not start out as a CEO. They started the same place we all did, and they managed to play the game of capitalism right.

Now. As the head of my own entity, I can honestly say that whatever I earn is WELL earned, and no, I don't intend on sharing, because I earned it. The part about capitalism (be it laissez-faire capitalism or any other type) that ppl forget is, in order for it to work, there HAS to be a hierarchy of sorts, blah blah blah. Someone has to oversee the business, and someone has to operate. (I think you get what I'm saying.)

Am I saying that workers should not be compensated? Absolutely not. A paid worker is a happy worker. And the fact of the matter is, many of those worker bees in those corporations don't necessarily get paid to do what they do on a normal basis. But you know my answer to this...either find a way to move up the ladder (make the system work for you), or create your OWN system.

And believe me...it really IS that simple. =o)

Carrie Pink, Modern Day Supergirl said...

Hi FIVE to KP!

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