Is CEO Compensation Too Much?

Is CEO compensation too much

According to a recent research report issued by the Economic Policy Institute, the average CEO compensation in the U.S. is up 937 percent from 1978 to 2013. That’s a sizable increase over the 10.2 percent increase in average compensation for the typical worker during that same time period. While the average CEO pay for large companies in America continues to rise at a steady rate for public corporations, the CEO pay to average employee income ratio in other parts of the world isn’t too dissimilar. This sizable difference in pay scale is somewhat less pronounced, however, with the salaries of executive officers of government entities, including the salary of one particular postal CEO.

Average annual CEO compensation in the United Kingdom, as reported by the High Pay Centre, is estimated to be $7.18 million. Moya Greene, CEO of Royal Mail, earns an annual salary of $2.29 million. Though Greene’s salary is substantially less than her counterparts, it’s still considerably greater than the $46,000 in average annual compensation by the typical employee at the company – 49 times greater.

Many highly skilled positions demand higher salaries as compensation for additional efforts involved in obtaining them. Doctors, lawyers, and physicists generally earn greater income than the average worker. Highly talented actors, musicians, and sports players often demand significantly higher incomes than the average worker to compensate them for their efforts. Unique skill sets have historically yielded greater income for individuals, but do the skill sets of CEOs warrant a salary that’s often 50 to 100 times greater than that of the average employee?

The debate over CEO compensation continues to gain strong attention as the income gap between these highly paid individuals and the earnings of their employees continues to widen. Though the future has yet to decide on this issue, discussions on income disparity are likely to increase in the coming years.

Do you think CEO compensation is excessive relative to the benefit they provide the corporations they manage?



  1. grannybunny

     /  August 19, 2014

    CEO compensation that is many multiples of that paid to the organization’s highest-paid employees is suspect. That scenario does not apply to USPS, where our CEO — the Postmaster General — is radically underpaid compared to his private-sector counterparts, say at FedEx and UPS, who are paid millions of dollars to spearhead much-smaller businesses.

  2. Anonymous

     /  August 20, 2014

    Think of the money the PO would save if they fired the PMG !

  3. Jonn

     /  August 20, 2014

    I don’t think that’s a good idea. Without leadership a company would collapse, Nobody gets paid if that happens.

  4. Anonymous

     /  August 21, 2014

    Lol !! no leadership at the top is better than donahoe …

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