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November 4, 2022

What has changed since 1978 that could account for the faster growth in CEO compensation

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According to Fortune magazine, in 1978, chief executive officers (CEOs) of major American corporations earned 30 times the average earnings of the employees of the corporations that they ran. In 2016, CEOs earned 276 times the average earnings of the employees of the corporations that they ran.

What has changed since 1978 that could account for the faster growth in CEO compensation than the growth of the average employee’s compensation? Do corporations have ethical responsibilities to their employees that suggest that this kind of CEO compensation is improper? Do corporations have ethical responsibilities to their customers to control CEO compensation?

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