From time to time, with fairly consistent regularity, the media wring their hands over executive pay levels and the bitter inequality in America they represent. Seldom mentioned, however, is how American executive compensation stacks up against the rest of the world.
A report by consulting firm Watson Wyatt (in Spanish, but there's probably an English version somewhere) found that senior executives in the US were paid only 5.3 times as much as middle managers, while the differences in salary levels in other countries were far greater: Argentina 20.3 times; Brazil 17.3 times; China 10.5 times, Spain 6.1 times and Mexico an astonishing 30.5 times. (The report notes that both fixed salaries and end of year bonuses were used in the calculations.)
The report made a similar comparison between senior non-professional administrative workers and junior, inexperienced professionals on the one hand [Group A], and more senior managers on the other [Group B].
As can be seen, pay levels in the US are far more equal than in most other comparison countries.
Perhaps that's something to point out to AFL-CIO drones when they complain about how much executives have "raked in" (they actually use that term on their "Pay Watch" site). The evidence clearly suggests that upper management in the US is being compensated at a reasonably higher rate than middle management (who, in turn, receive only reasonably higher compensation than the bottom).
If it's truly inequality that is the concern, a better option would be simply halting immigration rather than moaning about executive pay. Afterall, it makes little sense to claim to be battling inequality all the while importing ever increasing amounts of it. On the other hand, if it's Mexico or Brazil that is the model to aspire to, things are proceeding according to plan.
A report by consulting firm Watson Wyatt (in Spanish, but there's probably an English version somewhere) found that senior executives in the US were paid only 5.3 times as much as middle managers, while the differences in salary levels in other countries were far greater: Argentina 20.3 times; Brazil 17.3 times; China 10.5 times, Spain 6.1 times and Mexico an astonishing 30.5 times. (The report notes that both fixed salaries and end of year bonuses were used in the calculations.)
The report made a similar comparison between senior non-professional administrative workers and junior, inexperienced professionals on the one hand [Group A], and more senior managers on the other [Group B].
As can be seen, pay levels in the US are far more equal than in most other comparison countries.
Perhaps that's something to point out to AFL-CIO drones when they complain about how much executives have "raked in" (they actually use that term on their "Pay Watch" site). The evidence clearly suggests that upper management in the US is being compensated at a reasonably higher rate than middle management (who, in turn, receive only reasonably higher compensation than the bottom).
If it's truly inequality that is the concern, a better option would be simply halting immigration rather than moaning about executive pay. Afterall, it makes little sense to claim to be battling inequality all the while importing ever increasing amounts of it. On the other hand, if it's Mexico or Brazil that is the model to aspire to, things are proceeding according to plan.