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Clinton misues stat on CEO pay

Hillary Clinton said the “average American CEO” makes 300 times more than the typical worker, but she was referring to a study that looked at pay disparity between CEOs and average workers only at the top 350 companies.
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May 26, 2015, 12:08 pm
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Unless you have some number you haven’t shown us for the pay of the non-CEO employees at the businesses included in “management of companies and enterprises”,  it is not fair to say that those CEOs make ~4.5 times their average employee since we don’t know what their average employee is making.

Also taking out the CEO pay from the average won’t make a big change in the pay ratio since they are such a small percentage of the overall. Knowing that ~1% of workers are CEOs and that there are 246,240 CEOs tells us that there are ~24,377,760 non-CEO workers in this study. Since we also know the average compensation for all workers combined and CEOs separately we can calculate the total compensation paid, subtract out CEO pay, and then divide by the number of non-CEO workers. That gives us an average pay for non-CEOs of $45,881.82. This gives us a ratio of 3.94 to 1 instead of 3.83 to 1 (including CEOs in the average pay).

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