June 8, 2022

Wage Gap Between CEOs and US Workers Jumped to 670-to-1 Last Year

3 comments:

Anonymous said...


Article:
“The wage gap between chief executives and workers at some of the US companies with the lowest-paid staff grew even wider last year, with CEOs making an average of $10.6m, while the median worker received $23,968.”

From Institute For Policy Studies:
The CEO-worker pay gap at low-wage corporations grew even wider in 2021.
At 106 of the 300 firms we studied, median worker pay did not keep pace with inflation.
The average gap between CEO and median worker pay in our sample jumped to 670 to 1, up from 604 to 1 in 2020. Forty-nine firms had ratios above 1,000 to 1.
CEO pay at these 300 firms increased by $2.5 million to an average of $10.6 million, while median worker pay increased by only $3,556 to an average of $23,968.

My Question:

Why Compare “Apples” and “Oranges”, ie “Average” and “Median”?

The Average is a single number taken as representative of a list of numbers, usually the sum of the numbers divided by how many numbers are in the list

The median is the value separating the higher half from the lower half of a data sample, a population, or a probability distribution.

The Ave of 7, 10, 120, 4384, 504325 = 101769

The Median of 7, 10, 120, 4384, 504325 = 120

Just wondering...

Anonymous said...


Also, in figuring the ‘ratio’ between CEO and worker pay, I am making the ‘general assumption’ that the author is still using CEO average income and worker median pay.

In which case:

10,600,000 / 23,968 = 442

Ratio appears to be 441 to 1 vs. the 670 to 1 as stated in article.

Admittedly, there is an income disparity. All I need to do is look at homes people have, and cars we drive.

Anonymous said...


Article:
“The wage gap between chief executives and workers at some of the US companies with the lowest-paid staff grew even wider last year, with CEOs making an average of $10.6m, while the median worker received $23,968.”

My Question:

Why Compare “Apples” and “Oranges”, ie “Average” and “Median”?

The Average is a single number taken as representative of a list of numbers, usually the sum of the numbers divided by how many numbers are in the list

The median is the value separating the higher half from the lower half of a data sample, a population, or a probability distribution.

The Ave of 7, 10, 120, 4384, 504325 = 101769

The Median of 7, 10, 120, 4384, 504325 = 120



Also, in figuring the ‘ratio’ between CEO and worker pay, I am making the ‘general assumption’ that the author is still using CEO average income and worker median pay.

In which case:

10,600,000 / 23,968 = 442

Ratio appears to be 442 to 1 vs. the 670 to 1 as stated in article.