CEO to Employee Pay Ratio Hits All-Time High
As income inequality continues to grow as a major social, political, and economic topic, the Economic Policy Institute has added fuel to the fire with its latest report on the pay of chief executives at the top 350 American companies. EPI finds that on average, the top executives earned 312 times more than workers in 2017. The heads of the largest companies received an average pay rise of 17.6%, taking home an average of $18.9 million in compensation. At the other end of the scale, employee wages rose 0.3%. James K Galbraith, author of Inequality: What Everyone Needs to Know, addresses the result in an op-ed in The Guardian: “The important issue raised by this report is one that it doesn’t discuss. Was it a good idea to align CEO compensation in the country’s largest corporations with the casino of the stock market? So we have a country of wealth, dynamism and power, afflicted by decay, displacement, unemployment, foreclosures and blight.” It’s an argument at once moral and practical.
John Howell, Editorial Director