“Just as most Canadians are wrapping up lunch break on the first official work day of the year — 1:11 p.m. on January 2 — the average of the 100 highest paid CEOs will have already pocketed what it takes the average Canadian an entire year to earn. All in a day’s work.”If you thought that meant that the average Canadian CEO earns in about 4 hours what the average worker earns all year, you’re mistaken, but I don’t blame you. In reality, the average CEO pay is 171 times higher, which means that it takes CEOs about a day and a half to earn what the average worker earns in a year. The idea is that the CEO was paid for Jan. 1 as well.
I don’t see the point of being unclear about this. CEO pay is extreme enough that there is no need to make it look worse. Perhaps the mention of “January 2” was meant to add some clarity, but it doesn’t help much. Only more mathematically curious readers would figure this out from the pay ratio of 171.
I have no problem with CEOs who are genuinely worth the money they are paid. Too often, though, the company’s board of directors aren’t doing their jobs properly. The board is supposed to represent stockholders and negotiate for a good CEO at a reasonable price. This doesn’t work well when the CEO controls the board and gets friends elected to it.