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'CEOs don't want this released': US study lays bare extreme pay-ratio problem
Key Excerpts from Article on Website of The Guardian (One of the UK's leading newspapers)
Posted: May 21st, 2018
https://www.theguardian.com/us-news/2018/may/16/ceo-worker-p...
The first comprehensive study of the massive pay gap between the US executive suite and average workers has found that the average CEO-to-worker pay ratio has now reached 339 to 1, with the highest gap approaching 5,000 to 1. The study, titled "Rewarding Or Hoarding?," was published [by] US congressman Keith Ellison. Just the summary makes for sober reading. In 188 of the 225 companies in the reports database, a single chief executives pay could be used to pay more than 100 workers; the average worker at 219 of the 225 companies studied would need to work at least 45 years to earn what their CEO makes in one. Now we know why CEOs didnt want this data released, says Ellison, who championed the implementation of the pay ratio disclosure rule as it was written into the Dodd-Frank financial reform bill of 2010. I knew inequality was a great problem in our society but I didnt understand quite how extreme it was. The requirements, long resisted by some of the largest US companies, simply tells companies to identify a median worker and then calculate how much the CEO makes in comparison to that person. According to a recent Bloomberg analysis of 22 major world economies, the average CEO-worker pay gap in the US far outpaces that of other industrialized nations. The average US CEO makes more than four times his or her counterpart in the other countries analyzed. Ellison said the data remains imperfect, as companies are still able to exclude contracted workers from their reporting.
Note: For more along these lines, see concise summaries of deeply revealing income inequality news articles from reliable major media sources.
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