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Spread of Pay difference between CEO and lowest ranking employee

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What do you think should be a reasonable spread (either a dollar amount, XX times more than or percentage number) between the earnings of a firm's CEO and its lowest paid hourly workers and why? Provide your detailed explanation on this volatile issue.

(NOTE: Be careful when using percentages. For example, if the lowest paid employee makes $20,000 and you recommend a 100% higher for the CEO, you are only offering the CEO $40,000, and that really isn't reasonable.) I expect for you to suggest a reasonable spread, using either a dollar amount, XX times more, or percentage amount, and to not simply tell me that it isn't possible to do so!

NOTE: DO NOT suggest an hourly pay for the CEO, as he/she is a salaried person, as are all management personnel of a firm.

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https://brainmass.com/business/entrepreneurial-issues/spread-of-pay-difference-between-ceo-and-lowest-ranking-employee-254348

Solution Preview

There are a few views on this:

If a CEO wants to be "responsible" then the rule of thumb should be that the CEO earns 50 times more then the lowest paid employee.

So if the lowest employee makes $20,000, the CEO would make 1,000,000.

http://www.cypress.com/?rID=34986

Other views say that the spread should be 25 times. According to this website, if that worker received the minimum ...

Solution Summary

The spread of pay difference between a CEO and the lowest ranking employee is determined. The expert determines the reasonable spread is between these two.

$2.19
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