Is CEO Compensation Too Rich?
NBC Nightly News ran a piece tonight about CEO compensation.
It included an impossible sounding report that the average CEO takes home 431 times the compensation of an average employee. Surely this can’t be true. A quick calculation, though, shows it’s probable. Figure the average employee makes $45,000 per year and multiply that by 431 and you get an average CEO salary of $19,395,000. Let’s call it $20 million even.
Is your CEO’s work worth $20,000,000 a year? I’ll leave the answer to you. However, it concerns many that CEO compensation is often tied to things over which a CEO has no control instead of being tied to the actual impact of his or her efforts.
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