Can Americans handle their own financial affairs? Sadly, the answer appears no‼️
MOST PEOPLE think of their earnings as what they receive in their paycheck. But that’s not the case. Typically, it’s more—sometimes far more.
That brings me to my first topic: chief executive officers. You’ve all heard the numbers: This or that CEO was paid a salary of $30 million. Actually, no CEO was paid that sum or close to it. Those amounts represent total compensation, which might include their regular salary, stock awards and options, and the projected future value of a pension. Much of that compensation is at risk. Stock options may expire worthless. Also, most CEO pay isn’t in the tens of millions.
Those stratospheric numbers apply only to some CEOs of the world’s largest companies. Most CEOs have compensation of less than $400,000, lower than the minimum salary for a rookie player in the NFL. Admittedly, some CEOs receive total compensation that may not reflect solid performance. Simply put, they don’t deserve it.
But we still need to keep the numbers in perspective. For example, I looked at the compensation of the CEO of an S&P 500 company with 144,500 employees. His cash compensation was $4,987,635, equal to $34.52 for every worker at the company. His total compensation equals $153.67 per worker. Based on what I could find, the average hourly worker earns $16 to $18 an hour. Let’s call it $17. At that rate, their annual pay of $35,360 means that—if they each got their share of the CEO’s entire compensation—the 144,500 employees would receive a raise of 0.4%, equal to seven cents per hour.
Read the rest of the story …
Source: Count the Noncash – HumbleDollar