Page 1

The Scenario The Director starts with an annual salary of $600,000 and gets a $60,000 raise each year The Janitor starts with an annual salary of $60,000 and gets a raise of 12% each year The Raw Data Year Director Janitor 1997 $600,000 $60,000 1998 $660,000 $67,200 1999 $720,000 $75,264 2000 $780,000 $84,296 2001 $840,000 $94,411 2002 $900,000 $105,741 2003 $960,000 $118,429 2004 $1,020,000 $132,641 2005 $1,080,000 $148,558 2006 $1,140,000 $166,385 2007 $1,200,000 $186,351 The Logarithmic Scale Year Director Janitor 1997 5.78 4.78 1998 5.82 4.83 1999 5.86 4.88 2000 5.89 4.93 2001 5.92 4.98 2002 5.95 5.02 2003 5.98 5.07 2004 6.01 5.12 2005 6.03 5.17 2006 6.06 5.22 2007 6.08 5.27

The Wage Gap Widens $1,400,000 $1,200,000 $1,000,000 $800,000

Director

$600,000

Janitor

$400,000 $200,000 $0 1

2

3

4

5

6

7

8

9

10 11

The Ratio is Reduced Ratio 10.0 9.8 9.6 9.3 8.9 8.5 8.1 7.7 7.3 6.9 6.4

12.00 10.00 8.00

Director

6.00

Janitor

4.00

Ratio

2.00 0.00 1

2

3

4

5

6

7

8

9

10

11


The Scenario The Director starts with an annual salary of $600,000 and gets a $60,000 raise each year The Janitor starts with an annual salary of $60,000 and gets a raise of 12% each year

Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

The Base Scale Director Janitor 100% 100% 110% 112% 120% 125% 130% 140% 140% 157% 150% 176% 160% 197% 170% 221% 180% 248% 190% 277% 200% 311% The Sliding Scale Director Janitor

The Director Lags Behind 350% 300% 250% 200%

Director

150%

Janitor

100% 50% 0% 1

2

3

4

5

6

7

8

9

10

11

Is This a Pay Cut? 0.14

10.0% 9.1% 8.3% 7.7% 7.1% 6.7% 6.3% 5.9% 5.6% 5.3%

12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% 12.0%

0.12 0.1 0.08

Director

0.06

Janitor

0.04 0.02 0 1

2

3

4

5

6

7

8

9

10

11


The Scenario The Director starts with an annual salary of $600,000 and gets a $60,000 raise each year The Janitor starts with an annual salary of $60,000 and gets a raise of 12% each year

1997 2007

The Net Director 600,000 1,200,000

Who Really Comes Out Ahead?! Janitor 60,000 186,351

1,400,000

1,200,000

1,000,000

800,000 1997 2007

600,000

400,000

200,000

0 Director

Janitor

Watching wages  
Read more
Read more
Similar to
Popular now
Just for you