Most in US Vastly Unaware of CEO-to-Worker Pay Ratio
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iStock/Thinkstock(BOSTON) — So far this fall, income inequality has not become a major political issue during the midterm election season, most likely to the chagrin of Democrats who were hoping to campaign on it.
One of the reasons income inequality hasn’t resonated with the public is because of an apparent disconnect Americans have about the difference in pay between CEOs and the average worker.
According to Harvard University and Chulalongkorn University researchers, the median response in the U.S. was that the ratio of CEO salary to worker salary is 30-to-one, which is way, way off the mark.
The real story is that the disparity is closer to 354-to-one, a whopping ten times more than what Americans guess. Since most voters don’t realize this, it apparently makes them less inclined to take action about it.
Meanwhile, when asked what would be a more equitable wage gap between CEOs and workers, the median response was seven-to-one.
If that was the case, according to another Harvard study, and if CEO income stayed constant, Americans would need to earn an annual salary of $1.8 million.
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