It’s not all that much. Just 645%

Pay for executives skyrocketed 12.6% last year, dwarfing the 4.1% raises for rank-and-file employees.

I had to read that twice for it to sink in. Average salaries for CEOs increased by more than 12% last year, but regular run-of-the-mill middle-class workers? On average, these workers received less than 5% of an increase. Not a cost of living increase but a yearly increase!

Dollars and cents work better for me than percentages, so for argument’s sake, let’s say you make above minimum wage, generating a little over $31k a year. On the other hand, your CEO is raking in an astonishing $230k a year. That means your executive director, chief executive officer, or chief financial officer makes $200k more than you.

Do they work harder than you? I’m not a CEO, so I can’t say. Those in these positions have told us that they do, which, I believe, is an intentional deterrent, keeping you from trying to shoot for the CEO’s job. Is the workload more stressful? Probably. But is it worth $200k more than your work to make the organization more money?

Here are those percentages in real dollars. Your raise is $1200 spread over a year versus your CEO taking in $27,000 or 87% of your annual income. All in one raise!

In the meantime, corporations continue to complain about workers who don’t want to work and fail to bring them more profitability. Can you give me one good reason why I want to increase your bottom line and want to do as little as possible for you or your company?

If you want employees to care, STOP TALKING and DO SOMETHING!

  • Wage disparity – The difference between the average CEO and slightly above minimum wage worker is over 2800%. An average CEO in the United States brings home $850k a year versus
  • No room for advancement or growth – Companies are hiring outside talent and staff to replace the upper-level leaders, failing to build into their staff. Either that, or they refuse to move people up, instead choosing to make lateral moves with staff, believing that a new title will alleviate their ill feelings toward the organization.
  • Feeling invisible – No person likes to feel ignored. The CEO, I can guarantee you, is NOT ignored. Perhaps the CEO is being placated because the organizational culture is leaning toward whatever can make ME better, not my coworker. But that low-level minimum wage worker? Because their manager is working toward advancement and, quite frankly, doesn’t have the time to waste on someone who isn’t going to help them advance, right? So they are ignored. If the company or organization did that to their customers, I assure you they wouldn’t be in business long!

So what can you do about that?

Meet those people you don’t know. Talk to them. Do the math. What would you, Mr. CEO, need to give up to provide a better salary increase for your employees? Is it 12% of your salary? Is $200k enough to make a difference in the lives of your employees?

Stop talking about changes and make them. I’ll bet turnover will shrink, productivity will increase, and your board will approve your choices.


Short. Honest. Straight to the point.

Five Minute Observations

New Observations in your inbox, several times a week.

Discover more from Five Minute Observations

Subscribe now to keep reading and get access to the full archive.

Continue reading