"Get your facts first, and then you can distort them as much as you please." (Mark Twain)
Monday, April 10, 2006
Median 2005 pay among chief executives running most of the nation's 100 largest companies soared 25% to $17.9 million, dwarfing the 3.1% average gain by typical American workers, USA TODAY found in its annual analysis of CEO pay.
But, as Bonddad notes at MyDD, those numbers aren't adjusted for inflation. Accounting for actual purchasing power, the increase in wage earners' income is slightly less:
According to the Bureau of Labor Statistics, non-supervisory wages (which represent about 80% of the population) increased from $15.88 in January 2005 to $16.35 in December of 2005 for an increase of 2.95%. Over the same period, the inflation figure increase from 190.7 to 196.8 for an increase of 3.1%. So using the BLS numbers gives non-supervisory employees a net decrease of .15 in wages and using the USA Today figure gives the average American an increase of 0. Wow, that's really impressive.
The author goes on to note that US corporate profits increased 21.3% in the past year; meanwhile, "the share of national income going to wage and salary workers has fallen to 56.9%. Except for a brief period in 1997, that's the lowest share for labor income since 1966."
So, to all the CEO's reading this - WOO HOO!!!! YOU'RE RICH!!!! LET'S PARTAAAYYYY!!!!!!!!
And, to the others - that is, those who get by on the value of their labor - better luck next time.