Saturday, August 29, 2015

Comparing the Top Boss's Pay to Your's- Tori Gilchrist, 1st period

For a long time, CEO's have been required to report their annual salary. However, as of early August, the Securities and Exchange Commission has passed a law in which CEO's must not only report their annual salary, but that of their median employees as well. While predictions ranged around a 300:1 ratio, many companies have proved this assumption to be a bit too generous. Discovery Communications, Chipotle, CVS, and Walmart all have a CEO-to-worker-pay ratio of over 1100:1.

Judging by the author's antagonizing tone towards large companies, we can assume she is in the working or middle class. The article was directed towards the general public more so than high ranking businessmen, but the recently passed law was created mainly for the benefit of shareholders. Inevitably though, it will cause problems for both workers and businesses. Workers will be able to see if their competitors receive higher pay, or if they are being paid less than the company average. This could diminish the amount of potential workers, or cause current employees to leave in search of better options; but in some cases, businesses won't mind. CEO's will be able to see how much rivals are paying for labor, which may lead to the dispatching of domestic jobs and a push for cheaper, overseas work forces.
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3 comments:

  1. Tea DevereauxAugust 29, 2015 at 8:03 PM

    This is really interesting and it will be interesting to see whether or not this changes drastically for businesses and for workers.

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  2. BookerTStudentAugust 30, 2015 at 3:46 PM

    I think that this could really open the door for pay equality between men and women and their employers. For example the owner of that big corporation that cut his own salary to give everyone in the company equal pay, including himself. This, I hope, will lead the way for big companies to change how they treat their employees who are at a lower level. - Juliet Nelson

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  3. BookerTStudentAugust 30, 2015 at 5:00 PM

    This could possibly lead to the decrease of importance of the CEO position if the employees and CEO are paid the same amount. #shady - Cassidy Jones

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