3 ms·
It's basically the same issue as compound interest. Even if both groups got 2% next year, that would practically be 2.5% for the CEOs because of compounding on
by everforward 3y ago
It's basically the same issue as compound interest. Even if both groups got 2% next year, that would practically be 2.5% for the CEOs because of compounding on this. And it continues compounding from there.
It's also aggravating because those numbers look bad adjusted for inflation. Average inflation for 2023 was 4.1%, so inflation-adjusted, employees got a 2.8% raise and the CEO got 18.9%.
Lastly, and most importantly, CEO raises spike atmospherically when the company does well, but they take regular pay cuts, if any, when the company does poorly. It would be one thing if their pay swang wildly both directions, but it starts to look like "privatize the gains, publicize the losses".
When the company does well, most of the gains in pay go to the CEO. When the company does poorly, all the employees have to give stuff up for the company though.
This would bother me a lot less if we also saw "CEO takes 23% pay cut because new initiative failed" articles.