Productivity Pays – The CEO

Two separate articles came out on in the last few days. Those articles are:

GDP Growth Not Reaching Paychecks
CEO Pay: 364 times more than workers

What I conclude from even these two headlines is that the productivity gains seen over the last 7 years are resulting in higher earnings for large companies. The higher earnings give way to rewarding the CEO. But the CEO is not trickling down to his employees.

I’m curious as to what will, if anything, change this course? I suspect it will be the baby boomers. This group is content at the moment, but I can see a future where they are not interested in working at much as they are now. Higher wages might persuade them for some time, but it will only be temporary.
Is it that even though productivity is going up, the productivity is incremental and concentrated on low risk offerings? What I mean is that I don’t see any innovative products coming out. Nothing new is making me change my life. The iPod is 6 years old. The Prius is even older.
Is it the off shoring or the influx of cheaper skilled labor from foreign countries that is keeping the labor market balanced?
Is it the cost of benefits and the theory that they are truly more important than wage?

We should be in a sellers market, but we aren’t. Why?


Posted in:

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: