So there was this:
First off, much as I like Dean Cain, he seems to be missing the fact that a lot of people who work for McDonald’s work part time, including kids in after school jobs.
McDonald’s employs 375,000 people. If that CEO worked for nothing, and “redistributed” that money among them that would amount to (21,800000/375,000) less than $60 each, for the entire year.
On the other hand, McDonald’s Gross sales was $22.82 billion in 2017. A CEO whose decision making affects McDonald’s performance by 0.1% (one part in a thousand) is worth it to the company, and, therefore, that’s what his work is worth. And that’s not comparing best against second best, it’s comparing the performance of that CEO vs. some random guy off the street. The truth is, considering how much “make or break” a CEO’s decisions can be, they’re getting a bargain at $21.8 million.
Remember, it’s not “how hard you work” that matters for determining a “fair pay” but the value your work brings to the business. This seems to be one of the hardest things for people to understand.
That CEO’s decisions are worth a lot To McDonald’s and there aren’t many people who can do that as well, under the pressures where a wrong decision can cost tens of millions, if not hundreds of millions of dollars (also known as “You bet your company”). Many people think they can. The term for that is “delusional.”
The guy (or gal) working the counter? The value of his specific work is far, far less and he can be replaced by anybody willing to do the work after only modest training. The value he (or she), individually brings to the company? Not so much.
These comparisons of CEO pay to average worker pay are ridiculous. They are laughable on the face. The fact that so many people are so economically illiterate as to think they matter is really what makes economics “the dismal science.”