Business Services Industry
Wage-gap cap? Some say its time has come.(Enterprise)
Crain's Chicago Business, May, 2004
Is the CEO overpaid? Some look to the stock price for the answer. Others eye earnings. But a growing group of shareholder activists are pushing for yet another measure: the difference between what the CEO earns and what his average employee earns. Texas-based grocery chain Whole Foods Market Inc.
has had a rule in place for years that limits the CEO, John Mackey, and other executives to a base salary no more than 14 times what the average worker makes. No major Chicago company has followed Whole Foods' lead. But shareholder activists, union pension managers and investment funds that bill themselves as "socially responsible'' are beginning to push. "If you are over the 100-to-1 ratio, we want to know why,'' says Dan Steininger, CEO of Catholic Knights,...
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