CEO Pay VS Rank and File

Many complain that CEO make too much money, as the average is some 300% more than the rank and file. If the companies were doing well that is no problem, yet if the company is rolling in the profits it would make sense and the shareholders might agree that this is a good policy, as it is a reward for success. Unfortunately many poorly performing companies are still paying the CEO too much. The CEOs say it is very difficult to run a company in bankruptcy or which is losing money? Yet, if that is the defense then the reward comment for profitable companies makes no sense. After all if we pay for success we must take away for lack of success. So if a company goes Chapter 11, then the CEO ought to give all the money back that he earned in destroying the company and taking away all those jobs and causing the lay offs right? Well, sure it makes sense but we probably will not see that will we?

The biggest complaint of the rank and file is not only the CEO pay, their biggest complaints in fact are the treatment, lack of respect and general disdain for their existence by the company executives. We can understand the resentment yet I can tell you in my company I never treated employees badly and warned my franchisees when I saw them do treat their employees badly. In my observation a person who is disrespected wants revenge. In fact I always found it incredibly interesting that employees of other companies who ended up buying franchises from me always complained about their bosses, then once they became the boss of their own company they immediately did exactly what they hated themselves as employees to their crews.

Smart entrepreneurs, corporate executives and CEOs would be well advised to talk with the employees and rank and file. Why? Well because if you do not talk with the mailroom clerk your company is sunk and while you are at it, you better talk with the customers too. One should respect people like Ray Kroc, Tom Monahan, Fred Smith, Sam Walton and the others who have done this. And really in corporate America it is so rare, if you look around you will see in fact CEOs practicing emotional intelligence. I believe that those who run things are generally smarter than people assume and that they also often get input along the way. Additionally often the rank and file will condemn them simply because they do not understand. People of good character who are in powerful positions do not do threat folks badly, those of low character might. Character is built thru adversity often and if you have had it, you got it. And anyone who has knows it when they see it.

Just because a CEO makes too much money does not mean that they mistreat rank and file and just because they are in charge of things does not mean that they, they are not also kissing someone's rear also, namely the board of directors and shareholders. Additionally, why would you care how someone else treats you if you know self, shouldn