So, share prices are more important than quality of work, since the 80’s and 90’s, then? Because that is what it means, if you tie the CEO salary to stock market performance, rather than job performance, like the rest of us in evaluations, or to sales performance, or to inflation, or to product quality as measured by some other indicator, like maintenance outcomes, as just one possible example. But why, exactly, refuse to adjust the wages of the very workers who produce that product upon which the CEO salary relies, even for inflation, for all of those years? That makes no sense, even from a profit-oriented point of view. Worker wages relate to product quality, which in turn relates, or ought to relate, to the share value, right?
“In 2021, CEOs earned 399 times the typical worker, the EPI report found.
“Obviously, CEOs should be the highest-paid person in an enterprise,” said EPI Chief Economist Josh Bivens, who co-wrote the report. “But the question is, how much higher than everyone else?”
Why autoworkers are asking for a 46% pay raise
Business
Why autoworkers are asking for a 46% pay raise
However, the disclosure of CEO-worker pay ratios — a rule adopted in 2018 — doesn’t appear to have helped bridge the gap thus far, said Cindy Schipani, a professor of business administration at the University of Michigan.
And these ratios, Schipani added, are exceptionally high at U.S. companies.
“The American free market economy has taken this to such high levels,” Schipani said.
The average hourly wage for workers manufacturing motor vehicles and parts, adjusted for inflation, has dropped by more than 20% in the past two decades, according to data from the U.S. Bureau of Labor Statistics.
To put that in perspective, in just one year — between 2021 and 2022 — Stellantis CEO Carlos Tavares’ total remuneration rose by 22%.””
Thank you to NPR’s Danielle Kaye & Andrea Hsu.
We must Do Better.
Shira
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