Executive Comp and Wealth Disparity
On September 18, 2014, the Federal Reserve System reported that household wealth in the US had grown by some $37 trillion since the year 2000. They also reported that 100 percent of these wealth gains had gone to the top 3 percent of income earners. The next 7 percent of wage owners stayed the same in their wealth allocation and the bottom 90 percent of income earners experienced steady declines in their wealth (See Federal Reserve Bulletin). Clearly this does not seem like a fair distribution.
That was the topic of discussion on November 2, 2014 when the Institute for Enterprise Ethics hosted a follow-up discussion to a May discussion on “How the Think about the Ethics of Executive Compensation." The follow-up discussion dealt with the question of the relationship between wealth disparity in the U.S. and corporations’ executive compensation policies. Click here for a summary from that discussion.