|image courtesy Skyscraper City|
I was reminded of this by an article in the current issues of the always excellent Business Week. The great economist Peter Drucker, no friend to the middle class, still believed that once you got beyond a 20 to 25 ratio between average worker and executive pay, it wasn't good, and that executives raking in the cash while laying off workers was “morally unforgivable.” In Disclosed: The Pay Gap Between CEOs and Employees, BW writers Elliot Blair Smith and Phil Kuntz reveal that currently that ratio between average worker and top executive pay is somewhere around 495. There's also a list of how the ratio plays out for 250 of the country's leading corporations.
In some cases - Oracle, CBS, Disney, Exxon, to name just a few - the employees of corporations with a high ratio are getting a pretty good buck. More common, however, are highly paid executives running companies predicated on their workforce receiving marginal compensation. Starbucks has a ratio of 1,135, Chipotle 778, Target 664.
So, here's a couple of our Age of the Supply Chain stories.
|image: the Chuckman Collection|