August 7th, 2015 by Ed Bannen
It’s well documented that CEO’s raises have outpaced the average employee. There are varying views on whether this is justified. A CEO leading a company in the right direction creates more jobs, higher wages, and boost the company’s value. To sum that up; more jobs = economy win, higher wages = employee win, and boost to company’s value = shareholders win. If a CEO is successful at all three, shouldn’t they receive large pay increases far beyond the average employee?
Did you know: Apple went from approx. 14,800 employees in 2005 to 92,600 in 2014. Their interns made approx. $4,770 per month in 2012. In 2010, Apple’s share price was under $50 per share; as of 8/5/15 the price was $115.40. Tim Cook, CEO of Apple, received double his 2013 salary in 2014 after the company’s performance.
Now on the flip side, there are CEO’s getting pay raises as their company sheds jobs, cuts wages, and loses value. However with capitalism, can a CEO with those statistics expect to keep their job very long? What are your thoughts on the issue?