I recently ran across a 2007 study conducted by the Institute for Policy Studies, a progressive research center, which published figures on the pay disparities of various people in leadership positions. Based on 2005 and 2006 data, the study focused on the median salaries for the twenty highest paid individuals in various sectors. It found the following:
• Congress members: $171, 720
• Military leaders: $178, 542
• Federal executive branch: $198, 369
• Heads of non-profit organizations: $968, 698
• Heads of publicly held companies: $36.4 million
The study further pointed out that the median salary for the highest paid heads of hedge funds and private equity groups was $657.5 million. To be sure, it is no surprise that those in the nonprofit and public sector make less than their counterparts in the for-profit industry. It is also no surprise that those at the highest levels of corporate America make more than their highest paid counterparts in other fields.
Ultimately, the study probably would have been more interesting if it had compared figures from people in other fields such as those in medicine or law firm partners. Though I am sure even those figures would have underscored the study’s point that pay disparities are not just vertical, but horizontal as well. Again, while most people may be unaware of the extent of the gap, the fact of the gap seems unsurprising. Of course, given the current state of the markets, it would be interesting to see how this gap changes, if at all, in the next year.
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1. Posted by Elizabeth Brown on March 17, 2008 @ 17:09 | Permalink
What is perhaps more troubling than the pay disparities between the leaders in public sector and the private sectors is the fact that a second year associate at a big New York law firm makes more than the average member of Congress or the military leaders responsible for maintaining and securing our nuclear weapons.
2. Posted by Interesting on March 18, 2008 @ 11:42 | Permalink
But the public companies generate the income or tax revenues that pay the salaries of the first four groups of people on the list. The first four are all spenders, the public company ceo is the only earner. It makes sense they get paid the most.
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