this post was submitted on 14 Sep 2023
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Work Reform

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"average top CEO compensation was $15.6 million in 2021, up 9.8% since 2020. In 2021, the ratio of CEO-to-typical-worker compensation was 399-to-1 under the realized measure of CEO pay; that is up from 366-to-1 in 2020 and a big increase from 20-to-1 in 1965 and 59-to-1 in 1989"

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[–] [email protected] 43 points 1 year ago* (last edited 1 year ago) (5 children)

The problem is these people in the top positions don't see anything wrong with this.

I remember telling my republican friend that companies could easily raise worker pay. He laughed said that hamburgers would cost $20. I said you don't need to raise the price of the product, the people at the top could make less money. He then said "Oh, they are NOT going to do that."

[–] [email protected] 56 points 1 year ago (1 children)

He laughted said that hamburgers would cost $20.

They always say this, but when you mention the Nordic countries where wages are at least twice ours and fast food is pretty much the same cost, they start ranting about how any country that properly uses socialism doesn't count.

And they almost always end up saying something racist

[–] [email protected] 8 points 1 year ago

Well of course they don't see anything wrong with this, they're getting paid not to see anything wrong with it. They're paid astronomical amounts of money to keep the status quo by people even richer than them.

[–] [email protected] 5 points 1 year ago

Oh, they are NOT going to do that.

He's not wrong and that's issue.

[–] [email protected] 2 points 1 year ago

I mean, hamburgers already cost around $10-$15 anyway... and that's without workers getting a pay increase

[–] [email protected] -3 points 1 year ago* (last edited 1 year ago) (2 children)

Cutting CEO pay would not affect worker pay that much.

Fortune 500 CEOs make, on average, about 17MM a year. The average Fortune 500 company has 52k employees.

If you split their entire paycheck among just the bottom 50% of employees you're looking at like $3 per hour. That's... okay. But now you don't have a CEO, and this isn't really sustainable with any sort of inflation.

If you instead raise prices one cent on whatever product or service, you almost certainly will have more money to divvy up among employees, and it's sustainable.

Worth noting I'm for a federal cap on CEO pay but that's more to address the runaway nature of the CEO market, and its downstream effects.

[–] pthaloblue 8 points 1 year ago (1 children)

Giving everyone a $3/ hr pay bump from eating an overpaid CEO sounds like a pretty great start

But now you don't have a CEO

Added bonus!

[–] [email protected] -2 points 1 year ago

Except in the real world that is not a bonus.

[–] [email protected] 2 points 1 year ago

I think your decimal may be off. For full time work, looks like ~36 cents per hour, assuming full time. But, for many it would be even worse. For Walmart, completely eliminating the CEO pay could increase the bottom 50% earners annual income by a whopping $22.

I agree with the overall sentiment tho. More than what this article shows, I’d be interested to see the percentage and dollar amount increase in disposable income among various cohorts within the top 10 percent incomes.