Posted by Elena del Valle on November 9, 2016
By Jay Gronlund,
President, The Pathfinder Group
Jay Gronlund, president, The Pathfinder Group
Inequality of pay in business has become a crisis, fueled mainly by the excessive compensation of CEOs, according to a Hudson Institute article by Irwin Stelzer published July 30,2016. In 1965, the average ratio comparing CEO pay to the median worker’s was 20:1. Today CEOs earn more than 300 times, or 300:1. This alarming disparity has stimulated a widespread negative reaction, as the passionate response by Millennials for Bernie Sanders has demonstrated, and is even becoming a clear source of frustration for Hispanics who aspire to get ahead in the U.S. Even more disconcerting is evidence from studies showing that the highest-paid CEOs are often the worst performers. In short, the growing problem of inequality and extreme pay checks for CEOs has undermined the brand trust of many corporations.
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