Re:McKinsey, technocratic management, and structural inequality
by rayiner on Monday February 03, 2020 @11:13PM
(#22232324)
A average CEO pay in the Fortune 500 is 14.5 million: https://aflcio.org/paywatch. That’s $7.2 billion total. The Fortune 500 employs 26 million people. If you paid CEOs zero and redistributed it all, everyone would get a raise of about $277 per year.
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Re:McKinsey, technocratic management, and structural inequality
by dcolkitt on Monday February 03, 2020 @11:40PM
(#22232470)
The median annual compensation for the median Fortune 500 company is $72,000 per year.[1] So total redistribution would represent an increase of 0.3% to the take-home pay of the average big company worker.
Again, no matter how you want to slice it, aggregate CEO pay is simply too small in magnitude relative to aggregate American salaries to have any meaningful impact. At most you could say something about it being symptomatic of a larger problem, but CEO pay is absolutely not the direct cause of slow growth in wages.
[1] https://www.usatoday.com/story/money/business/2018/05/25/ceo...
Re:McKinsey, technocratic management, and structural inequality
by AstralStorm on Tuesday February 04, 2020 @05:24AM
(#22234077)
I'd say lobbying and voting with money is, and CEOs are responsible for it.
The richer they are, the less they care about wage or product, the more they care about extracting rent - via investment or cuts, causing stock market reactions, which ignore all those things.
They tend to also lose the common touch, just like the aristocracy that preceded them.