Wednesday, September 19, 2018

CEO PAY fails to keep pace with average workers salaries.

BUT, BUT ... I was told by Rep. Joe Kennedy III (D-MA) that CEO's make 300 times the average salary of their employees.

Which leads to an interesting little math factoid on my part. Using 300x as the rule, when I joined (then) Lockheed Missiles and Space Company as an average engineering employee in 1983, Dan Tellep, the LMSC CEO should have been making something on the close order of $12M. During the last 35 years, the cost-of-living has roughly increased by a factor of 2-1/2, LMSC has become the Lockheed Martin Corporation, and Marilyn Hewson is the current CEO of Lockheed Martin. If salaries had roughly kept pace with inflation, my 1983 'average engineer' salary would be about $100K (a bit high, but not out of the ballpark from currently available salary data) and therefore 300x salary would be about $30M. Hewsom's actual salary is $20.2M.

Politicians, especially Democrat politicians, would be well served if they had the math skills of an average 8th grader high school graduate (I'm being generous).

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