Pay Gap Widens Between Management and Workers

The sixth annual survey by the Institute for Policy Studies and United for a Fair Economy today reported that the pay for top corporate executives versus an average production worker last year reached a gap of 419 to 1.

The survey, A Decade of Executive Excess," also cited that the gap compares to a 1980 sum of 42 to 1. If the pay for workers had risen at the same pace as executives, the organization says the average production worker would today earn $110,000 annually. Instead, the pay rate for this employment sector is $29,000, and the minimum wage would have been $22.08/hour compared to today's rate of $5.15.

One factor leading to the widening gap a significant rise in the stock market, since management now relies on 401K and other investments for the bulk of annual compensation. Over the last 10 years, annual CEO compensation at a large company is estimated at $10.6 million compared to $1.8 million in 1990. In 1998, executives realized a 36 percent increase.

Others commented on the gap and explained that it is due, in part, to America's desire for wealth coupled with a booming economy.

You may like these other stories...

For the first time since 2006, more than 50 percent of CFOs believe the US economy will show signs of improvement over a six-month span rather than remain the same or worsen, according to a new study from Chicago-based...
By Jason Bramwell, Staff Writer CPAs in New Jersey, New York, and Pennsylvania believe economic conditions in the United States will likely be the same one year from now, and while they predict higher business revenues...
By Jason Bramwell Managers in accounting, finance, and IT are cautiously optimistic about their hiring plans for the fourth quarter of 2013, according to a new hiring outlook survey from staffing firm Brilliant. ...

Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.