Reprinted from TIME; Money by Brad Tuttle on March 12, 2018.
If there’s one thing that gets people more upset than high CEO pay, it’s when companies pay CEOs absurdly more than rank-and-file employees. Many big companies pay their CEOs 100 or even 300 times more than their typical workers. But The Wall Street Journal reports that one firm based in Ohio paid its CEO a whopping 935 times more than its median worker last year.
The company in question is Marathon Petroleum Corp., the second-largest oil refiner in the US, which paid CEO Gary Heminger $19.7 million last year. That is obviously an awful lot of money. Still, Heminger wasn’t even in the top 100 highest-paid CEOs in a recent list published by the AFL-CIO.
How, then, did Marathon Petroleum wind up with what the Journal called “one of the biggest contrasts” in CEO-to-worker pay? The landmark Dodd-Frank requires that public companies disclose their CEO-to-median-employee pay ratio to the Securities and Exchange Commission, and a firm’s ratio can be enormous if the CEO makes a fortune, the workers are paid a pittance, or both. …