Name: Here's Why CEOs Make So Much Money
Uploaded: 2015-09-01T03:42:33.000Z
Duration: 3 min 1 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

In the United States, CEOS of major companies make, on average, 300 times what their workers

earn. While the average worker salary is about $50,000 dollars, many CEOs make tens of millions

of dollars. According to researchers, in 1970, this pay ratio of CEOs to average workers

was only about 20 to 1. So what happened? Why are CEOs paid so much more?

Well, first of all, America hosts some of the largest corporations in the world. Wal-Mart,

along with 16 other successful businesses are among the 50 highest grossing companies

in the world. In the US, a large portion of a CEO’s salary comes in the form of company

stock. CEOs of successful companies can see their worth increase dramatically alongside

the stock market, unlike most workers. Then, CEO salary options are often dictated by company

board directors, who the CEOs appoint themselves. Such close relationships leave little room

for pay cuts. Even if company performance drops, CEOs may still get a raise to inspire

But the drastic gap between worker and CEO wages is a relatively new phenomenon. The

next highest gap is in Switzerland, where the disparity is about 1-to-150. This income

inequality took the national spotlight after the 2008 recession, but it started back in

the late 1970s and early 80s. As the globalization of the workforce became increasingly common

and outsourcing allowed companies to prosper, worker productivity steadily rose. Over the

last 40 years productivity nearly doubled. Yet, due to weak US labor laws and overseas

competition, wages for the middle and lower class have barely even kept up with inflation.

Meanwhile, company profits have exploded, with nearly all those profits diverted upwards.

America is woefully behind in labor rights, compared to many other developed countries

like Germany and Sweden. A pattern of undercutting workers’ interests puts America on par with

In August 2015, the US Securities and Exchange Commission implemented a new rule that requires

companies to disclose the wage gap between CEOs and the average workers. Experts agree

that this could show shareholders which companies prioritize their employees’ success. Although

CEO wages and profits help America stay competitive on a global scale, it is America’s workforce

Besides making way more than their low-level employees, many American CEOs have cleverly

learned to avoid paying BILLIONS in taxes. To find out how they do it, check out this

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