CEOs Paid 273 Times More Than Workers in 2012 by Jessica Mallari

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CEOs earn a substantial income compared to other workers. However, the exact amount alarms society.  In a study conducted by the Economic Policy Institute, they found that last year CEOs obtained 14.07 million including stocks.  On the other hand, the average  non-supervisory worker earned $51,200.  This demonstrated that CEOs made 273 times more than the average worker.  In addition, since 2009, while most workers’ earnings dropped .6 percent, CEO’s wages rose 37%.  These wage discrepancies perpetuate income inequality.  However, the question remains, is this wage discrepancy fair?  Greg Mankiw believes, “it’s fine because they are better and more productive than the rest of you rabble.”  I understand where he is coming from in the sense that CEOs must be very efficient in the corporate world, and have a vast knowledge for their company.  However, I do not believe this makes the CEOs better than any other worker.  I am sure that they work hard; however, I believe there are many other workers who work hard too.  The skill sets each worker has differs, yet it does not mean one is better than the other.  The CEO would not be able to do his job efficiently if the employees working under him were not efficient themselves.  Therefore, being “better” does not justify a CEOs wage.  In addition, how is a worker going to stay motivated to climb the “ladder of success” if his income is decreasing?  Corporations must find a way to fairly compensate workers based on hard work, merit and not because as Mark Gongloff states, “They have some magical company running skill.”

http://www.huffingtonpost.com/2013/06/26/ceos-paid-times-more-than-workers_n_3504821.html?utm_hp_ref=income-inequality

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