Sep 27, 2018 - Dell bets on new technologies to grow server biz

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Do CEOs Deserve Their Pay? - INSEAD
According to the most recent report of the Economic Policy Institute, the average CEO-to-worker pay ratio in the United States has gone down from 286-to-1 (in 2015) to 271-to-1 (in 2016). This number may disappoint many top executives who were hoping to see it return to its peak of 383-to-1, achieved in 2000. But in spite of this "bad" news, it's clear that CEOs will not receive a pauper's wage.
Looking at these figures, it appears that nobody heeded the warnings of management sage Peter Drucker who determined that the proper ratio between a chief executive's pay and that of the average worker should be around 20-to-1 (as it was in 1965). Drucker believed that larger discrepancies would bring about morale problems within the workforce. As things stand now, many CEOs earn more in a single workday that the average worker makes in an entire year.

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Today's TradeBriefs Cartoon

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