This week at PayScale, we did a deep dive into the salaries of CEOs to understand how much CEOs make relative to typical workers. We also looked at how employees feel about the salaries their chief executives earn. Find out …
Tag: CEO salaries
According to the Bureau of Labor Statistics, 248,760 Americans held the job title "Chief Executive" in 2013. As leaders who are (at least theoretically) responsible for making some of the most crucial decisions involving a company and its workforce, Chief Executives have at times singular amounts of authority, privilege, and responsibility. They are compensated accordingly, usually with salaries clocking in at a minimum of six figures. In the U.S., for example, CEOs earn an annual median salary of $153,353, according to PayScale's Salary Survey, which includes 6,674 CEOs.
It’s not everyday that a college president decides to take a $90,000 pay cut for the benefit of low-wage workers. Last week however, Raymond Burse, interim president of Kentucky State University, did just that. His decision sets a new precedent amongst presidents and CEOs to raise the bar on livable wages for employees.
In Switzerland, the highest paid CEOs earn only 43 times more than the average worker. This ratio, while tiny compared to CEO-to-worker pay in the U.S., has so enraged the Swiss that they're considering putting a cap on CEOs' salaries.
The leader of a company is expected to make considerably more than the average employee, but at what point, if any, does the discrepancy become unethical?