Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘pay disparity’

CEO pay is a scandal—or anyway, it should be—this week in the war on workers

Tuesday, August 20th, 2019

Since 1978, CEO pay has grown 1,007.5% by one measure and a mere 940.3% by another measure, the Economic Policy Institute reports. Average workers? Their pay has gone up just 11.9%. That’s not all, either. The increase in CEO pay has dramatically outstripped the increase for other very high earners, which is positively modest at 339.2%.

The numbers start to seem a little more manageable if you drill down to more recent years, but the inequality is still striking:

CEO compensation has grown 52.6% in the recovery since 2009 using the options-exercised measure and 29.4% using the options-granted measure. In contrast, the typical workers in these large firms saw their annual compensation grow by just 5.3% over the recovery and actually fall by 0.2% between 2017 and 2018.

EPI also finds in the data an indication that no, CEOs aren’t magical unicorns who are worth all that money on their own unique merit: “CEOs of large firms earned 5.4 times that of the average top 0.1% earner in 2017, up from 4.4 times in 2007. This is yet another indicator that CEO pay is more likely based on CEOs’ power to set their own pay, not on a market for talent.”

This blog was originally published at Daily Kos on August 20, 2019. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos.

Nine Years Later: Why We're Still Fighting Pay Discrimination

Monday, January 29th, 2018

Nine years ago today, then-President Barack Obama signed the Lilly Ledbetter Fair Pay Act into law, restoring working women’s right to sue over pay discrimination. It was the first piece of legislation enacted during his presidency, and he noted the significance of the moment: “It is fitting that with the very first bill I sign…we are upholding one of this nation’s first principles: that we are all created equal and each deserve a chance to pursue our own version of happiness.”

Lilly Ledbetter, the law’s namesake, had blazed a trail forward in the spirit of that fundamental idea. After two decades of hard work at Goodyear Tire and Rubber Co.’s Gadsden, Alabama, plant, she learned that she was making thousands less than her male counterparts. Over the course of her career, she had lost out on more than $200,000 in wages—plus even more in retirement benefits. She challenged Goodyear’s discriminatory actions, eventually taking her case to the U.S. Supreme Court and the halls of Congress.

Her journey led to a major step forward in the fight for justice in the workplace. But that fight is far from over. Women continue to face discriminatory pay practices—and the problem is even worse for women of color:

  • Women overall make 80 cents on the dollar that men make.
  • African American women make 63 cents.
  • Native American women make 59 cents.
  • Latinas make 54 cents.

This outrageous pay disparity doesn’t just hurt women. Some 40% of working women in the United States are the sole breadwinner for their families. When they face discrimination on the job, their loved ones suffer as well.

The AFL-CIO is fighting to end this injustice. The first step is collecting and releasing data on gender pay discrimination. When employers can’t hide their despicable actions, we can effectively fight to end them. Take action today and urge the U.S. Equal Employment Opportunity Commission to collect equal pay data.

This blog was originally published at AFL-CIO on January 29, 2018. Reprinted with permission. 

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