Thursday, August 11, 2011

What is the distribution of labor costs in fortune 500 companies?

The argument for reducing minimum wage and benefits for labor because they are detrimental to business is often made. But at the same time, the ratio of average CEO annual pay to average factory worker annual pay was 344:1 in 2007 according to research by United for a Fair Economy. By way of comparison, the same ratio was about 25:1 in Europe in 2007. So my question is, out of all the costs of wages, benefits, and bonuses within fortune 500 companies, how much of these costs were from payments to individuals making $250,000 a year or more before taxes (including wages, healthcare, retirement, bonuses, etc.)?

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