In April 2011, TradePost examined the difference between executive and non-executive pay and evaluated how employees felt about their boss’ performance in the workplace.
We kicked off last year’s post by discussing a CNNMoney.com article titled “CEOS Earn 343 Times More Than Typical Workers,” which cited an AFL-CIO measurement of CEO salaries at 60% of the firms traded on the S&P 500. Ironically, the same day that last year’s article about CEO wages came out, so did a Monster.com survey of job seekers called “Could You Outperform Your Boss at His or Her Job?” According to the Monster survey, over 69% of U.S. respondents thought they could. (TradePost, 4/11/2011).
This disparity between executive and non-executive pay is still a hot topic today. The Associated Press (AP) just published an analysis of CEO salaries using data from Equilar, an executive pay research firm. AP found that the average CEO of a publicly traded company in 2011 earned $9.6 million— a 6% increase in pay from the previous year (BusinessWeek, 5/28/2012). To put this in perspective, the average American worker’s salary rose merely 1% last year to $39,300—indicating the growing gap between the two socioeconomic groups.
Further illustrating that gap is a recent CareerBuilder survey that discusses the importance of a CEO’s visibility among their staff members. The survey results show that over 20% of employees don’t know what their CEO looks like, and 40% of employees have never met their CEO. So how does this stack up with employee satisfaction? Well according to the analysis, CEO visibility is a vital component to ensuring employees feel connected with both the company and their job (CareerBuilder, 3/29/12).
Employees feel more loyalty and dedication toward their company and management team when they feel connected to the company’s leaders. Suffice it to say that C-suite executives need to take certain steps toward forming some type of relationship with the employees of their company.
Need ideas on how to connect? Check out these examples from industry leaders given in CareerBuilder’s article:
Bring brown bag lunches to the staff room as an opportunity to reach out and connect with employees.
- Engage in social media to keep your employees updated about what’s happening inside the company.
- Visit local and regional offices to connect with as many individual team members as you can.
What do you think?
Is your boss a superstar or a slacker? Do you feel connected to your managers and C-level executives running your company? Let us know!