Your CEO could pocket more in one workday than you earn all year, setting the example for huge pay inequalities throughout your company. That’s the message from the first large US corporation to comply with a new federal rule requiring companies to reveal how much they pay their CEOs, compared to typical workers.
Not the Worst, Just the First. Manufacturing technology giant Honeywell paid its CEO $16.7 million in 2017 – 333 times the pay of its median worker who earned $50,286. So far, only about 20 companies have complied with the regulation, which is based on the 2010 Dodd-Frank financial reform law, signed by President Obama, but just went into effect. As more corporations release annual reports, look for more megabucks disclosures. And INN will report on exorbitant executive salaries, offshoring of American jobs and other outrages.
Uncovering Another Secret: The rule also encourages companies to spill the beans on another secret: how many jobs they’re shipping offshore. That’s because they don’t have to factor in these low-wage jobs when computing their typical workers’ salaries. Therefore, Honeywell revealed it has 86,092 workers overseas, compared to only 57,027 here in America.
Pay Gaps Keep Growing: The gaps between CEO salaries and workers’ wages just keep widening. The Economic Policy Institute estimates that CEO salaries were 271 times the average workers’ wages in 2016. In this video, Money Magazine explains how CEOs rig salary structures in their favor.