Andrés Solimano
Prague- November 2014
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Distributive impact of economic growth:
Pro-rich growth
Equitable growth: more evenly distributed in
the bottom 99 percent.
What does the evidence say?
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The United States
United Kingdom
Germany
Sweden
Russia
China
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Compensation of CEO: salary+ bonus+ equity+
Pension plan + medical insurance + severance
payment (golden handshakes).
Monetary compensation (MC)= salary + bonus
Total compensation= MC+ rest
Wage levels for workers and mid-level
employees. Widening of wage gaps.
Widening wage gaps.
CEO and workers pay in United States 2013: Selected Companies
CEO Pay (Total Cash
Compensation)
Median
Worker Pay
1
$4,206,510
$73,700
57:1
2
$7,155,536
$71,300
100:1
$8,321,925
$76,300
109:1
$1,951,918
$55,400
35:1
$15,736,525
$79,300
198:1
$4,661,912
$52,400
89:1
$5,811,849
$109,100
53:1
$6,982,706
$48,300
145:1
$8,542,050
$75,500
113:1
$3,000,783
$88,100
34:1
$11,270,450
$81,100
139:1
$8,623,759
$87,700
98:1
$1
$115,900
0
$3,512,107
$66,800
53:1
$1,261,218
$114,500
11:1
$1,547,057
$104,500
15:1
$7,726,271
$67,300
115:1
$20,899,150
$77,900
268:1
$9,987,496
$70,500
142:1
$5,652,550
$93,700
60:1
$1,587,725
$56,600
28:1
$17,038,538
$60,300
283:1
$7,067,183
$78,464
102:1
$5,498,426
$70,484
86:1
Company
Annual Revenue (in
billions)
$29.90
3M
$127.40
AT&T
3
$70.10
AIG
4
$100.10
Bank Of America
5
$81.70
Boeing
6
$48.00
Coca-Cola
7
$46.10
Cisco Systems
8
$42.70
FedEx
9
$134.30
Ford Motor
10 Exelon
$23.50
11 General Electric
$146.90
12 Goldman Sachs
$41.70
13 Google
$52.20
14 General Mills
$16.70
15 Microsoft
$73.70
16 Oracle
$37.10
17 Nike
$24.10
18 Twenty-First Century Fox
$27.70
19 Prudential Financial
$84.80
20 Pfizer
$61.20
21 United Parcel Service
$54.10
22 Walt Disney
$42.30
$62.10
Average
Average of full list
$52.97
Source: CEO to Worker Pay Ratio at www.payscale.com
CEO-to-Worker
Pay Ratio
CEO payment in the United Kingdom: Selected companies
(Financial Times Stock Exchange - 100 companies: 2010-2011)
Company
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
CEO remuneration
(estimate)
CEO remuneration as
multiple of National
Minimum Wage
CEO remuneration as
multiple of UK median
earnings
Reckitt Benckiser
£ 14,402,000
1,262
679
Vodafone
£ 12,851,499
1,126
606
BHP Billiton
£ 10,161,721
911
479
Marks and Spencer
£ 8,781,996
770
414
HSBC Holdings
£ 8,475,484
743
399
Royal Bank of Scotland
£ 5,850,432
513
276
Lloyds Banking Group
£ 5,831,250
511
275
Rio Tinto
£ 5,749,209
504
271
Anglo American
£ 5,277,249
463
249
Royal Dutch Shell
£ 4,084,251
358
192
Barclays
£ 3,560,000
312
168
Imperial Tobacco
£ 3,283,787
294
155
Rolls-Royce Group
£ 2,862,404
251
135
Antofagasta Minerals
£ 2,153,945
189
102
Essar Energy
£ 797,230
70
38
Hargreaves Lansdown
£ 405,917
36
19
£ 5,908,023
520
279
Average
Average of 100-FTSE
£ 4,685,941
408
219
Sources: "A third of a percent" report at www.equalitytrust.org.uk
Note: CEO pay includes Basic pay (annual bonus, pension, supplements, golden handshakes, relocation, pension
contributions, and long term share-based incentives.
Average CEO-to-worker pay ratio 2012 (US dollars): Selected countries
Average CEO
Average worker
Country
Ratio
compensation
compensation
USA
Canada
Switzerland
Germany
Spain
Czech Republic
France
Australia
Sweden
United
Kingdom
Netherlands
Israel
Japan
Norway
Portugal
Denmark
Austria
Poland
$12,259,894
$8,704,118
$7,435,816
$5,912,781
$4,399,915
$2,159,300
$3,965,312
$4,183,419
$3,358,326
$34,645
$42,253
$50,242
$40,223
$34,387
$19,630
$38,128
$44,983
$37,734
353.9
206.0
148.0
147.0
128.0
110.0
104.0
93.0
89.0
$3,758,412
$3,576,256
$2,189,104
$2,354,581
$2,551,420
$1,205,326
$2,186,880
$1,567,980
$561,932
$44,743
$47,056
$28,804
$35,143
$43,990
$22,742
$45,560
$43,555
$20,069
84.0
76.0
76.0
67.0
58.0
53.0
48.0
36.0
28.0
Source: American Federation of Labor and Congress of Industrial Organizations
(AFL-CIO) in http://www.aflcio.org/Corporate-Watch/Paywatch-Archive/CEOPay-and-You/CEO-to-Worker-Pay-Gap-in-the-United-States/Pay-Gaps-in-theWorld