Dear Commons Community,
The New York Times has a featured article examining the pay gap between CEOs and their typical workers. A summary indicates that the three companies with the largest gaps are Disney, Microsoft, and Oracle.
“Clearly the big winners in the economy over the last three to four decades have been those at the top…
The company with the widest pay gap on the list was Walt Disney, whose chief executive, Robert Iger, received $43.7 million last year. Given Mr. Baker’s estimate that Disney’s median worker received $19,530 last year, that translates to a C.E.O. multiple of 2,238 to one.
A Disney spokesman said that 92 percent of Mr. Iger’s compensation was based on the company’s financial performance, which was outstanding in 2014.
Second on the list was Satya Nadella, Microsoft’s chief. His pay package of $84.3 million last year placed him at 2,012 times the estimate of $41,900 for the median employee’s earnings at Microsoft.
A Microsoft spokesman disputed the calculation, saying that a typical employee at the company earned “well north of $100,000,” and that much of Mr. Nadella’s pay would be realized only in coming years — if the company performed well. He contended that a better measure of Mr. Nadella’s pay for 2014 was $22.75 million.
Using Microsoft’s figures, Mr. Nadella’s pay ratio would still be at least 150 to one.
Oracle’s founder, Lawrence J. Ellison, ranks third on the pay gap list: 1,183 to one by Mr. Baker’s calculations. Oracle’s spokeswoman declined to comment.”
Workers of the world – UNITE!