CEO Compensation
InfoWeek – Relics from an industrial economy –
The average chief executive in the United States earned 262 times the pay of the average worker in 2005, according to the Economic Policy Institute (EPI), a non-profit think tank.
In 2005, a CEO earned more in one workday (there are 260 in a year) than an average worker earned in 52 weeks, according to the EPI (Washington, D.C.).
In 1965, U.S. CEOs in major companies earned 24 times more than an average worker; this ratio grew to 35 in 1978 and to 71 in 1989, according to the EPI.
In the industrial economy it made sense for these guys to be making the most (they were at the top of the pyramid) but in a network economy compensation should correlate to flows. Make the most impact, make the most cash. It’s about the ecosystem comprised of individuals, not corporations as organisms.
-Shlok
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