Last Tuesday when most people went back to work after the holiday break, it was reported that by 11am that day the average top-earning CEO in Canada had already earned, in less than one work day, what the average worker makes in an entire year. Corporate executive’s average annual compensation hit a record $10.4 million which is more than 200 times the average worker’s salary.
The bigwigs also received average compensation hikes of 8% compared to 0.5% for the average working stiff. It is a little disturbing to watch CEO’s pay continue to increase the gap between them and the average worker. In the long run we end up with some people making more money than they need or can spend in a lifetime while the vast majority continue to exist payday to payday. I think everyone believes CEO’s should be paid more than the average employee but is there a limit? Obviously not so far in our free enterprise society and maybe there shouldn’t be a limit on how much salary, bonuses and stock options the person at the top can receive. The solution is probably changes in the tax system so stock options, for example, shouldn’t get the preferential tax deductions they do now. By the way, not to spoil your coffee, but a report shows that in 2016 the lowest wage for the Top 100 richest CEO’s in Canada was $2,489.62 per hour. I’d like a gig like that.