Bridging the Wage Gap with the CEO Act

I am writing to you as a concerned constituent to express my strong support for the Curtailing Executive Overcompensation (CEO) Act, a crucial piece of legislation that addresses the growing disparity between CEO compensation and the wages of average workers. From 1979 to 2020, net worker productivity rose by 61.8%, a testament to the hard work and efficiency of American workers. However, during this same period, workers’ wages only increased by 17.5%. In stark contrast, CEO compensation has skyrocketed by more than 1,209%, which is over 18 times the rate of productivity growth. This widening gap is not just a matter of economic concern but also a reflection of deepening inequality within our society. The current economic landscape, marred by record-high inflation, further exacerbates this issue. CEOs now earn, on average, 399 times the pay of the median worker, marking the highest disparity in half a century. Such vast inequalities in compensation not only undermine the economic fabric of our nation but also pose a significant threat to the principles of democracy and fairness that we hold dear. The CEO Act, championed by U.S. Senator Sheldon Whitehouse and Representatives Barbara Lee and Alexandria Ocasio-Cortez, proposes a sensible solution to this problem. By introducing an excise tax on companies with a CEO-to-median-worker pay disparity exceeding 50-to-1, the Act targets only large corporations with over $100 million in gross receipts and $10 million in payroll. This tax, calculated based on the size of the executive compensation and the degree of pay ratio disparity, is a measured approach to addressing this issue. Moreover, the Act is not just an economic measure; it is a step towards rectifying the imbalance in our democratic processes. The immense wealth accumulated by CEOs often translates into disproportionate political influence, creating a two-tiered system where the affluent have more sway over policy decisions than the average citizen. It is troubling to note that political donors, due to their financial clout, often receive more attention from our elected representatives than regular constituents. In conclusion, I urge you to support the Curtailing Executive Overcompensation Act. By doing so, we can work towards a more equitable society and ensure the survival of democratic capitalism. Our country thrives when there is fairness and opportunity for all, not just for a select few at the top. Thank you for considering my views on this important matter. I look forward to your response and your support for the CEO Act.