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CEOs Salaries Over 1000x Their Employees
The gap between CEO and employee pay is the highest it’s ever been. In an interview with Fast Company, heiress Abigail Disney spoke out against the massive pay disparity at Disneyland. When they’re being treated that badly, you might have to ask why? Disney CEO Bob Iger makes $65.7 million a year —1,424 times his average employee. In 1965, the CEO-to-worker pay ratio was 20 to 1. In 2019, it’s nearly 300 to 1. CEOs like James Quincey (Coca-Cola) Kevin Johnson (Starbucks) Michelle Gass (Kohls) make over 1000 times their average employees. Mattel CEO Ynon Kreiz makes 3,408 times his average employee while Gap CEO Arthur L. Peck makes 3,566 times his average employee.
A disappointed Abigail Disney, Granddaughter of Roy Disney says, “When he got his bonus last year, not this year — I did the math and I figured out that he could’ve given personally, out of pocket, a 15% raise to everyone who worked at Disneyland and still walked away with $10 million. I went out to Anaheim and I sat with the union, and I listened to the workers who were getting paid minimum wage. Most of them couldn’t afford to live less than an hour and a half from Anaheim, where they worked. They had had benefits steadily stripped from them. People were choosing between insulin and housing. I mean this is horrifying. This is horrifying. I knew my grandfather and I worshipped the ground he walked on, and I know that was never the company he wanted to start.”
It is understandable that CEO’s don’t set their own salary. Few people do. But they do set salaries for the people who work underneath of them. So, if they’re not happy with the pay ratio at the firm, there are two possible ways to correct it — otherwise, it doesn’t look good.
Lower top executive salaries or raise the salary of others.
Brut.
