CEO Pay. Corporate CEO average pay climbed to 257 times more than an average worker’s pay in 2013. Worker pay is too low compared to allowances for teenagers. Workers are paid a fraction of what teenagers’ allowances are compared to their parents’ household income.
The median household income from 2008-2012 was $53,046. Based on the CEO/worker ratio, the household income/allowance ratio would limit 13-year-olds allowances to $3.97 cents per week. But the average weekly allowance for 13-year-olds is $9.52 based on surveys posted on the kidsmoney.org website. And they get room and board in the deal.
Teenagers almost never get laid off or fired, no matter how much their parents feel they should be. True, teenagers may lose their allowance, but they’d have to lose it 30 weeks each year to get a measly $3.97 per week average.
I worry that revealing this will lead CEOs to reduce their teenagers’ allowances as a matter of equity.
The Christian Science Monitor says CEO incomes are rising faster than workers income. “Last year’s average CEO increase was 8.8 percent, while the average salaried worker’s increase was 1.3 percent.” Both pale compared to a 13-year-old’s projected 40 percent increase at the age of 14.
I worry that revealing this will lead CEOs to ask for larger increases next year.
The reason CEOs get more is they’re paid in stock bonuses. Why not pay workers with stock bonuses and let them share the wealth equitably since limiting employee incomes allows increased corporate profits and increases in CEO incomes?
Workers would be shareholders who could use their shares to boost CEO income because of their inspirational leadership. Or not. Hmm, maybe that’s why CEOs don’t pay workers with stock bonuses.
Well, since CEO pay is determined by Board members who are frequently CEOs of other corporations, companies could do the same for workers. CEOs could allow their employees’ wages be determined by recommendations from representatives of workers in other regional and competitive firms. Workers could increase other workers’ wages the way CEOs increase each other’s income until the system is equitable again.