One that can be summarized thusly: "Top executives are taking all that money for themselves".
Average CEO in 1970, $700,000/yr, 25 x worker average.
Average CEO in 2012, $13,000,000/yr, 380 x worker average
One that can be summarized thusly: "Top executives are taking all that money for themselves".
Average CEO in 1970, $700,000/yr, 25 x worker average.
Average CEO in 2012, $13,000,000/yr, 380 x worker average
The management salaries weren't the part of the calculation. They were considered constant and therefore insignificant in the mass production.
But now, when your CEO makes 380x worker average, and the rest of the apparatchiks make the same combined, and you have 250 workers - then it is no longer wise to "optimise" worker salaries at all because they are by far not the biggest expense!
That's capitalism turned upside down. And I know it because I see how people are able to account for recurring costs but put a blind eye on development and management costs.
P. S. Maybe it tells us it's CEO/traditional management who need to be disrupted now. In some areas you can imagine a worker's cooperative paying 1.5x average salary to workers, outsourcing their management cheap, and still being insanely competitive thanks to no apparat spendings.
($13,000,000-$700,000) / 28,000 = $439