Salary Gap Widens

Do you feel that your salary increases don’t keep up with the cost of living? Do you perceived a widening difference between the you and the rich? Do you feel that you work your hardest, then don’t get the reward you expected in your paycheck?

Then, you must not be the CEO of a major corporation.

Recently released research by a number of organizations confirmed this last few weeks that the gap between the have’s and the have not’s continues to widen. The good news indicated that the gap was less than last year.

The Conference Board released their U.S. Salary Increase Budgets for 2012 survey indicated that the average salary in America will increase 3% in 2012 or .5% more than the 2.5% for this year. So, if you make

• $24,000 you will get an annual increase of $600 or $50 a month. For many people, their raise won’t cover the increase in wheat and petroleum products, let alone medical, housing, and other food related costs.
• $50,000 you will get an annual increase of $1,250 or $104.16. You may break even on petroleum, wheat, and medical costs. However, the increase in your medical premium could completely wipe out your increase and leave you even or worse.
• $100,000 you will get an annual increase of $2,500 or $208.33. You may even be able to save a little bit or pay down your debts when all is settled.

This assumes, of course that you weren’t one of the millions who spent one month to the entire year unemployed. If you were unemployed, then you took a minimum 20% cut in pay. You may even be one who lost all support last year including Cobra insurance.

Of course, you don’t have these worries if you are a CEO of a major corporation (not even a Fortune 500 company). Governance Metrics International revealed last month that the average salary for CEO’s (out of 747 surveyed) increased by 18%. 28% when additional benefits like stocks, bonuses, and other perks were added to the total. One radio station report the average increase for a CEO totaled $18 million dollars. I’ve tried to verify that number but can’t find it.

The reality persists that the middle class shrinks every year, while the ultra wealthy and the poor increase. Yet we continue to support this excess. Why were the CEO’s rewarded so well by stockholders? They sat on huge bank vaults of cash, didn’t hire people, and continued to lay people off. These decisions delighted shareholders. All except for the employees who don’t hold preferred stock and don’t see the big dividends others receive.

When viewed in this light, the talks from both parties seems ridiculous.