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CEO Salaries, are they worth it?

The CCPA (Canadian Centre for Policy Alternatives) published a graphic on their site which has excited the Media. The graphic is an updating graphic showing the Clash for Cash: CEO vs. Average Joe. It gives you an idea of how much some of the top 100 CEOs in Canada make in compensation.

The tool is helpful to show folks just how much is spent on the top end of the management tree. The numbers suggest that a CEO makes about 189 times what an average employee makes in a year. The graphic is much more fun to look at.

The question does arise from this simple ratio, are the CEOs of Canada’s Elite 100 companies really worth the $8.38 Million (on average) that they make every year? I have no idea. My opinion is that the reason these folks make what they make, is that they have convinced someone they are worth that, and thus they get that kind of compensation. Is this fair? Fair doesn’t come into it. If the company is successful, then the CEO has earned their pay. If they don’t they are fired. That should be how it works. In some cases like Nortel you had to wonder what was going on.

The mainstream media seems fixated on pointing out the 1% that make so much money and such, but I’d like to point out that there are a couple of Hockey players earning that much, a few more NFL Football players, even more Basketball Players, and pretty much every baseball player that earn that kind of compensation as well. Is that fair? Some billionaire is willing to make a Multi-Millionaire out of someone who is talented at their job, that is just what happens in this world.

CEO Pay Worth it?

Do I like all of this? Hell no, I’d love to make that kind of money myself, but if I did, think how much folks who were more talented might make?

I do still like the graphic as well:

CEO Income, REAL BIG

If you go to the link (click on the picture), you’ll see it being updated (which makes it much more depressing).

Feel Free to Comment

  1. There is a big brew-ha-ha in Peterborough about the executives and board @ the hospital earning a ton but also getting a wack of other benefits (like $1k / mo for personal vehicle use). Can’t say I don’t get angry too.

  2. Yeah, I agree it doesn’t really matter if they are ‘worth it” or not as long as they are doing the things to make the company successful.

    Although, truth be told I only really invest in companies that the CEO isn’t getting some ridiculous pay. Some CEO’s have/get enough stocks that they don’t need a yearly pay and that’s the CEO that I’d rather have as they are just as interested in seeing the company be successful as I am!

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