21 April 2019: Is wealth inequality a problem, and what are you doing about it?
natpernick.substack.com
Is excessively high CEO pay a problem? In 1965, the average ratio of CEO pay to employee pay was 20:1 (Forbes 2018), but today it is often 300:1 (Bloomberg 2019, Harvard Law School 2018). Excessively high CEO pay may cause several problems. First, it promotes a false sense of confidence and arrogance, among CEOs doing a mediocre job. As a small business CEO, I know how important it is to continuously ask my employees what they are doing. This not only makes the business run well, but minimizes the risk of a catastrophe that could put us out of business. But humility is difficult when receiving stratospheric salaries, and this failure to know what was going on has led to disastrous CEO failures at General Motors regarding ignition switches, Boeing regarding faulty software and in Michigan by our "business savvy" former governor regarding drinking water contaminated with lead and
21 April 2019: Is wealth inequality a problem, and what are you doing about it?
21 April 2019: Is wealth inequality a…
21 April 2019: Is wealth inequality a problem, and what are you doing about it?
Is excessively high CEO pay a problem? In 1965, the average ratio of CEO pay to employee pay was 20:1 (Forbes 2018), but today it is often 300:1 (Bloomberg 2019, Harvard Law School 2018). Excessively high CEO pay may cause several problems. First, it promotes a false sense of confidence and arrogance, among CEOs doing a mediocre job. As a small business CEO, I know how important it is to continuously ask my employees what they are doing. This not only makes the business run well, but minimizes the risk of a catastrophe that could put us out of business. But humility is difficult when receiving stratospheric salaries, and this failure to know what was going on has led to disastrous CEO failures at General Motors regarding ignition switches, Boeing regarding faulty software and in Michigan by our "business savvy" former governor regarding drinking water contaminated with lead and