A Phony Pay Comparison

Reynolds, Alan
December 2005
Business Journal (Central New York);12/23/2005, Vol. 19 Issue 51, p21
This article focuses on the huge differences between salaries of a typical chief executive officer (CEO) and an average production worker. According to a press release form the American Federation of Labor and Congress of Industrial Organizations, the average CEO earns 431 times the salary of an average production worker. But this alleged ratio of CEO pay to average wages is much worse than its separate parts. And this ratio is the result of dividing one bogus statistic by another bogus statistic which generates the errors. The report compares the pay figures for top executives at just a few hundred top firms. It does not give the actual average.


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