Every so often someone will make some noise about how the greedy CEOs make too much and the workers don’t make enough. If people would only do the math themselves, they might not repeat this vacant charge.
To begin with, the median CEO salary in the US is only $750,000. Usually when people think of a CEO’s salary, they picture the head of a major Fortune 500 company and not the small corporations whose CEO makes exponentially less in annual compensation. But what if we take the top salaried CEOs and divided their salaries among their employees, surely that would make a difference, wouldn’t it? No. Not when you do the math. The CEOs with the highest compensation also run the companies with the largest numbers of employees. Counting the salaries and bonuses only (since that is what the company pays out through payroll and stock options and other monies would go to stock holders) the extra pay employees would see if the CEO’s pay were divided equally among them on the presumption of a 40 hour week, the increase is negligible.
Breakdown of hourly increase in salary if the CEO’s salary and bonuses were equally divided among all company employees.
- John H Hammergren, McKesson — Salary + Bonuses only : $6.31M, 37,700 employees = $0.08/hr
- Ralph Lauren, Ralph Lauren — Salary + Bonuses only: $20.75M, 25,000 employees = $0.50/hr
- Michael D Fascitelli, Vornado Realty — Salary + Bonuses only: $1.01M, 4,428 employees = $0.11/hr
- Richard D Kinder, Kinder Morgan — Salary + Bonuses only $1, 10,685 employees = $0/hr
- David M Cote, Honeywell — Salary + Bonuses only: $25.1M, 132,000 employees = $0.09/hr
- George Paz, Express Scripts — Salary + Bonuses only: $3.09M, 30,215 employees = $0.05/hr
- Jeffery H Boyd, Priceline — Salary + Bonuses only: $4.55M, 7,000 employees = $0.31/hr
- Stephen J Hemsley, United Health Group — Salary + Bonuses only: $4.7M, 133,000 employees = $0.02/hr
- Clarence P Cazalot Jr, Marathon Oil — Salary + Bonuses only: $4.4M, 3,367 employees = $0.63/hr
- John C Martin, Gilead Sciences — Salary and Bonuses only: $4.21M, 5,000 employees = $0.63
For the life of me I can’t understand why people believe they should be entitled to someone else’s money just because they make so much more. Why shouldn’t CEOs make the money they do? A better question: why do you think you should have a piece of it? An even better question: why don’t these people demand athletes’ salaries be divided up among the fans? Sure people express amazement at how someone playing a kid’s game makes so much, but they don’t demand their salaries be confiscated and distributed — and the average professional athlete makes more than the average CEO!
- NBA player avg. salary: $5.15M
- MLB player avg. salary: $3.2M
- NHL player avg. salary: $2.4M
- NFL player avg. salary: $1.9M
** All figures culled and were accurate as of time of writing, all sites accessed at time of writing.