9
Nov/15

FactCheck: Clinton Referring to Average CEOs Rather than Top CEOs


FactCheck’s Headline is: Clinton Misuses Stat on CEO Pay.

Clinton made two statements: ““There’s something wrong when CEOs make 300 times more than the American worker”  and “The average CEO makes about 300 times what the average worker makes.”  The Washington Post, when critiquing the statement, noted that Clinton was speaking extemporaneously, but also referring to notes.

It appears that Secretary Clinton was referring to a study of the top 350 corporations by revenue, when it fact there are over 246,000 CEOs in America.

FactCheck notes that as there are 246,240 Chief Executives in America, the top 350 CEOs certainly can’t be characterized as ‘average CEOs.’  If wages of the 246k CEOs were compared to the average worker’s wage, the ration would be approximately 4 to 1 (however FactCheck acknowledged that as a CEO receives compensation apart from wages, that it is not an accurate comparison).  In any event, the ratio for the ‘average CEO’ to ‘average worker’ would be appear to be quite lower than ‘300 times.’

The post concludes that Clinton ‘could easily’ add ‘Top CEO’ as a qualifier, but she hasn’t. ‘ As an aside, when Fortune Magazine reported on the study, its headline was “Top CEOs make more than 300 times the average worker.”

 

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