As the share of income taken home by top earners in the United States has risen over the past few decades, so too, has popular concern about economic inequality. Much of the outrage has centered on the compensation of the United States' top corporate executives, who are said to be taking home ever-fatter paychecks, while the incomes of lower-level employees have stayed flat. For instance, CEO’s are being overpaid, hurting the shareholders of the company, and their employees. The effects of executive pay have many negative results and there should be an improved system to use for the average worker to live on a fair comfortable pay.
In the U.S. in the past 50 years’ executive pay has skyrocketed off salary charts. The gap between executive pay …show more content…
To some experts the increase on CEO pay is based their performance and achievements they bring in over a 3-year period. In the studies, many pay experts have collected data on CEO pay and achievements. Scott Thrum himself writes, “At auto-parts retailer AutoZone Inc., shareholders gained almost 18% annually over the past three years, while CEO William C. Rhodes III earned just $9.5 million, less than about 80% of the CEOs studies. Compensation is appropriate, relative to the performance.” The essence of Thrum’s argument is CEOs are only earing money suitable to their performance and not more than other data is shown. However, none of the profits coming into the company is being contributed to the low-income workers. All of the profits that come are just spilt between the shareholders and a the CEOs …show more content…
Thus, leaving all the workers and shareholders out of jobs and money. On the other hand, high salaries of top executives within a company may not be the biggest problem of income inequality, however it is the too-low salaries of the median workers. Baltimore Sun agrees when he writes “this transparency is not just about shaming CEOs, however; there are real economic consequences to income inequality. The gap between rich and poor in the 30 Organisation for Economic Co-operation and Development countries (OECD), which includes the United States, is at its highest level in 30 years.” In short of Sun’s argument studies show that boosting the salaries of low-paid employees has a greater impact on the economy than reducing CEO pay, with relatively modest changes resulting in big economic gains
In the U.S. in the past 50 years’ executive pay has skyrocketed off salary charts. The gap between executive pay …show more content…
To some experts the increase on CEO pay is based their performance and achievements they bring in over a 3-year period. In the studies, many pay experts have collected data on CEO pay and achievements. Scott Thrum himself writes, “At auto-parts retailer AutoZone Inc., shareholders gained almost 18% annually over the past three years, while CEO William C. Rhodes III earned just $9.5 million, less than about 80% of the CEOs studies. Compensation is appropriate, relative to the performance.” The essence of Thrum’s argument is CEOs are only earing money suitable to their performance and not more than other data is shown. However, none of the profits coming into the company is being contributed to the low-income workers. All of the profits that come are just spilt between the shareholders and a the CEOs …show more content…
Thus, leaving all the workers and shareholders out of jobs and money. On the other hand, high salaries of top executives within a company may not be the biggest problem of income inequality, however it is the too-low salaries of the median workers. Baltimore Sun agrees when he writes “this transparency is not just about shaming CEOs, however; there are real economic consequences to income inequality. The gap between rich and poor in the 30 Organisation for Economic Co-operation and Development countries (OECD), which includes the United States, is at its highest level in 30 years.” In short of Sun’s argument studies show that boosting the salaries of low-paid employees has a greater impact on the economy than reducing CEO pay, with relatively modest changes resulting in big economic gains