Posted by on Aug 11, 2017 in Business and Finance | 0 comments

Almost All Big Companies in USA Give 15.6 Million Dollars a Year To A CEO

Almost All Big Companies in USA Give 15.6 Million Dollars a Year To A CEO

For an employee, the salary received can affect their performance. Some people use their salary as the main income. They should be able to manage Business and Finance for their lives every month so they do not lose. One position in the company that has the biggest salary is the CEO

A study by the Economic Policy Institute says CEOs in the largest American companies on average receive a salary of 15.6 million dollars by 2016.

In a report published by Lawrence Mischel and Jessica Schieder, the number is 271 times more than the income of ordinary workers working in the same company. The salary ratio of bosses and workers was slightly lower than in previous years but still higher than the ratio of 20 to 1 between workers and their bosses in 1965, or 59 to 1 in 1989.

CEO salaries have risen far more than the earnings of ordinary workers in the past few decades, and this has also increased much more than the value added of the companies. The compensation received includes salaries, the right to buy shares at a price, and bonuses, called EPI, a nonpartisan review institute focusing on concerns for low- and middle-income workers.

CEOs are highly paid because their skills and responsibilities are enormous, and very few people can do so. Meanwhile, the lowest minimum wage earned by American full-time workers is a little over 15 thousand dollars per year.

While most workers earn more than that and many states are setting a higher minimum wage, those in the lowest group earn about 0.1 percent of CEO earnings at the top. The national minimum wage of US $ 7.25 per hour has not gone up in eight years. The Business for a Fair Minimum Wage group said inflation in that period had cut the payroll by about 15 percent.

While many employers argue that raising the minimum wage will lead to lower employment among low-income people, the Business for a Fair Minimum Wage says higher wages for the lowest earners can stimulate demand and help the economy.

Comments are closed.

Share This