Human Values and Corporate Social Impact: Fairness in Pay Ratios
Culture determines the varying boundaries of what constitutes “equal shares.” And who is “equal” in status. In our own society, popular opinion may accept a certain unequal ratio between CEO pay and the average pay of other workers, but not beyond a given point. In the 1970s, management specialist Peter Drucker advised companies to stick to a ratio of 20-to-1 between CEOs and average worker pay, to avoid resentment. The average is currently at 273-to-1.