Food for thought: A CEO makes as much in a day as a teacher does in a year

[n2doc]

A Teacher’s Year, a C.E.O.’s Day: The Pay’s Similar

By HUBERT B. HERRING
Published: September 3, 2006
Enough already on how many millions this or that chief executive earns, how many stock options are tossed around to keep the Champagne flowing, the McMansion dusted, the Bentley polished.

As a little back-to-school thought, let’s shift gears to a group of workers who earn pennies in comparison but who, it could be argued, play at least as vital a role in society. It is teachers, after all, who try to make sure that those captains of industry have educated workers.

According to the American Federation of Teachers, the state with the highest average pay for teachers in 2003-04 was Connecticut, at $56,516; the lowest was South Dakota, at $33,236.

Or look at it this way: Pick a corporate chieftain — say, Jeffrey R. Immelt of General Electric. He earns $15.4 million a year. Every single day — including Thanksgiving and Christmas — he makes almost what the average teacher does for a year of taming wild children, staying up nights planning lessons, and, really, helping to shape a generation.

http://www.nytimes.com/2006/09/03/business/yourmoney/03count.html

[brentspeak]

1. A tax cut for the rich lifts all yachts

And provides absolutely no benefit for the economy.

[XOKCowboy]

2. That surprises me!

I figured it'd be more like they make a teacher's yearly salary while at lunch.

[n2doc]

3. Give 'em a few years

Most recent economikc report showed that only the top 5% had income increases that outpaced inflation. If you were in the lower 95%, you fell behind. Even in the next 5% below the top, folks making 6 figures a year....

[pooja]

4. Maybe once you add in the retirement package and all the perks.

[dogday]

5. The Rich get Richer while the poor get poorer

and the middle class is squeezed out....

This is part of the problem in this country, we are drawing the lines between those who have, and those who have not.....

[BadgerKid]

6. Pretty much correlates w/Dem. states

Compare to 2004 electoral votes:

[clydefrand]

7. Using your figures,

since a teacher works about 180 school days (depending on area), that means they make almost $60,000.00 a work day? I don't think so.

[Sinti]

9. The OP is talking about yearly salaries, comparing the two

The example salary used is $15.4 million - $15,200,000

Average U.S. Teachers Salary = $46,600

$15,200,000/365 = $41,643 (rounded down to the nearest dollar)


OTOH if they only worked 180 days and spent the others golfing, vacationing, schmoozing at social functions, cocktail parties and so on:

$15,200,000/180 = $84,444 (rounded down to the nearest dollar)

Salary is salary, not a daily or hourly wage.

[Horse with no Name]

8. That is criminal

NO other word fits as nicely.

[ulysses]

10. hey, pay just reflects the values of the society.

That's only partly true, of course. In Georgia, I make substantially more than my sister does in Oklahoma, for the same special ed teaching job in which she has a lot more experience than I do. That's due in part to our repuke governor who likes to "throw money at education" during election years. :D

Still, the society pays what it thinks a job is worth. I think we have a sick society, but that's me.

edited for problematic smiley

[n2doc]

11. Unfortunately, that isn't true

The reason CEO pay is so high is that it is set by compensation boards packed with the friends of the CEO, usually other CEO's who use the pay levels as justification for their own raises. And anyone who thinks that this is controlled by stockholders is living in a fantasy world- stockholder driven pay measures are defeated in the overwhelming number of cases. CEO pay has skyrocketed in the last 2 decades, much more than other fields. And companies aren't peanized for it, in fact they can use it as a tax deduction (Thanks, CONgress!) Teacher salary, is, unfortunately something that is set by society, as we (non-teachers) rarely put pressure on the pols to raise salaries.