A new study suggests that the more employees a company lays off, the higher the compensation for its CEO.
The study was conducted in the United States by two liberal advocacy groups, the Institute for Policy Studies and United for a Fair Economy. The report generated by the study is entitled
Executive Excess 2001
Using official government figures or statistics from published reports on executive pay in magazines like
, the report determined that the average pay of CEOs at 365 major corporations was $13.1 million. However, the report also noted that, of those 365 companies, 52 had laid off more than 1,000 workers during the past year. The CEOs of those firms averaged $23.7 million in pay – 80 per cent more than the group as a whole.
The research also suggested that the gap between CEO compensation and that of the average worker is increasing. Over the last decade, CEO pay in the United States rose by an average of 571 per cent, while a typical employee only received a 37 per cent increase over the same period.