Reply #34: not sure about the inflation factor [View All]

[G_j]

but I found this telling as far the pay ratio of the average worker to the average CEO from 1990 to 2003.


Average CEO $155,769 a Week , Average Worker Takes Home $517


http://www.commondreams.org/news2004/0414-10.htm

CEO Pay/Worker Pay Ratio Reaches 301-to-1
Average Worker Takes Home $517 a Week; Average CEO $155,769 a Week

BOSTON - April 14 - After declining for the last two years, the gap in pay between average workers and large company CEOs surpassed 300-to-1 in 2003. In 2002, the ratio stood at 282-to-1. In 1982, it was just 42-to-1.
According to Business Week's 54th Annual Executive Compensation Survey, published this week, the average large company CEO received compensation totaling $8.1 million in 2003, up 9.1% from the previous year. Business Week's survey covers the 365 largest companies that have reported their executive pay to date.

From 1990 to 2003:
CEO pay rose 313%
The S&P 500 rose 242%
Corporate profits rose 128%
Average worker pay rose 49%
Inflation rose 41%

The average production worker fared less well in 2003. Their annual pay was $26,899 in 2003, up just 2.1% from 2002 according to the Bureau of Labor Statistics. The average worker took home $517 in their weekly paycheck in 2003; the average large company CEO took home $155,769 in their weekly pay.

If the minimum wage had increased as quickly as CEO pay since 1990, it would today be $15.71 per hour, more than three times the current minimum wage of $5.15 an hour.

..more..