Fiscal Year 2019
McDonald’s
CEO Compensation = $5,229,155
Worker Median Wage = $9,291
Pay Ratio = 1,939:1
Papa John’s
CEO Compensation = $7,301,499
Worker Median Wage = $7,598
Pay Ratio = 1,038:1
(Median Wage: wage “in the middle.”, i.e. half of the workers earned below this level.)
#IncomeInequality #fightfor15
@khird I’m no mathwiz but you’re right it seems very off. I checked their website and found this: “The data from the AFL-CIO Executive Paywatch database draws from company proxy statements that are filed with the U.S. Securities and Exchange Commission...Pay ratio data and median employee pay are displayed as disclosed by each company’s proxy statement. CEO pay ratio may not equal the displayed CEO’s total compensation due to differing company methodologies in calculating pay ratios...”
@khird “The AFL-CIO’s calculation of the average CEO compensation is based on the AFL-CIO’s analysis of 498 companies in the S&P 500 Index with available pay data as of June 2020. The average CEO-to-worker pay ratio of S&P 500 companies is calculated as the arithmetic mean of the company disclosed pay ratios...”
@khird For companies without available pay ratio data, the CEO's pay is compared to the average annual income earned by U.S. private sector workers, which is from the U.S. Bureau of Labor Statistics’ Quarterly Census of Employment and Wages.”
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pay ratio is a horrible measure.. there is one CEO that guides the entire company and has significant effect on the companies decisions and direction which ultimately is a win or lose for the company.
The average employee represent large numbers of generally low-skill workers. I dont think I've ever ordered something at mcdonalds without someone messing up my order... their quality of work is minimum just as their wage is, and thus fair.
In fact there is only one CEO and tens of thousands if not hundreds of thousands of employees. But that ratio CEOs should make 10x more, not less.
@gawrsh Math seems off in calculating the ratios. McDonald's is 563:1; Papa John's is 961:1 as I run the numbers. Intuitively it doesn't make sense that the McDonald's ratio is nearly 2x higher given that they report both a lower executive salary and higher median salary.
I take it the median is dragged down because these companies mostly employ part timers? Even at current US national minimum wage, those medians aren't close to the 2000 hours per year a full time employee puts in.