Peter Whoriskey found that executive pay has gone up 400 percent since the 1970s.Īnd at Dean Foods, after you adjust for inflation, the average employee actually makes 9 percent less than they would have in the 1970s. And corporate executives now account for most of the very richest Americans. The average worker? A pay increase of just half a percent. Last year, top CEOs saw their pay rise by 23 percent, according to a recent New York Times study. RAZ: Gregg Engles is hardly an extreme case. But it's a whole new level of executive grandeur that we see today. Ken Douglas, back in the '70s, had a Cadillac.
He's got membership in four different golf clubs. WHORISKEY: Well, he's got a $6 million house in Dallas. WHORISKEY: He had averaged about $10 million a year, 10 times as much as Ken Douglas, and he lives a much different life. Today, things at Dean Foods are a lot different, especially for the current CEO, a man named Gregg Engles. He had access to a company car, membership in a country club. Douglas had a nice three-bedroom home in the Chicago suburbs. His compensation package, in today's dollars, was a million bucks a year. RAZ: Douglas thought it would be bad for morale. And a board - his board of directors said, Ken, we want to give you some more money. All of these good things are happening to the company. RAZ: Kenneth Douglas was, by all accounts, a talented CEO. PETER WHORISKEY: He is the CEO of Dean Foods, which is a dairy company that has become one of the largest dairy companies in the U.S. RAZ: In a recent issue of The Washington Post, reporter Peter Whoriskey wrote about a man named Kenneth Douglas, who was a corporate executive back in the mid-1970s. That's our cover story today: the growing income gap, why it might be making the economy worse. And the last time the gap was so wide, 1928, right before the stock market crashed, leading to the Great Depression. But what Sarah Bloom Raskin was essentially saying was this: The economic recovery might be slow going for a long, long time if the income gap continues to grow.Īnd how big is it? Well, the latest statistics show that right now, the wealthiest 1 percent of Americans earn more than 20 percent of all the money generated in this country each year. Now, when Federal Reserve governors speak, they speak cautiously. RAZ: We'll hear more from Raskin in a moment. SARAH BLOOM RASKIN: This inequality is destabilizing and undermines the ability of the economy to grow sustainably and efficiently. And in that speech, she said something striking. And the topic was the growing gap between rich and poor in America.
I'm Guy Raz.Ī couple weeks ago, Sarah Bloom Raskin, a member of the Board of the Governors of the Federal Reserve, gave a speech here in Washington. On yearly basis, she earns above $500,000 dollars on average.GUY RAZ, host: From NPR News, this is WEEKENDS on ALL THINGS CONSIDERED. Sarah Bloom is one of the most well-paid attorneys in the States having a net worth of over $5 million dollars. Her efforts, which included leading the development of the G-7 Fundamental Elements of Cybersecurity for the Financial Sector, helped to make the financial sector more secure and resilient in the face of increasingly daring economic factors. She was a national and international champion of cybersecurity in the financial sector, helping to raise awareness of the issue among corporate executives and boards. The 61-year-old served as the Treasury Department’s second-in-command from 2014 to 2017, where she was known for her pursuit of innovative solutions to improve Americans’ shared prosperity, the resilience of the country’s critical financial infrastructure, and the defense of consumer safeguards in the financial marketplace. She was previously a Rubenstein Fellow and a visiting professor of law practice at Duke. Brown Distinguished Professor of the Practice of Law for 2021. Sarah Bloom Raskin, a former deputy secretary of the United States Treasury, has been named the Colin W.
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