I don’t know if I could. I’d have to do some belt-tightening….
Seriously, McKesson’s CEO is due a pension of $159 million. This is on top of an average $50 million annual compensation plan. Do you think most of his employees will retire with such a generous package?
I doubt it.
According to the Center for Retirement Research at Boston College, only 42% of private-sector workers are covered by employer-provided retirement plans, and a typical household headed by a person aged 55 to 64 has total retirement assets of about $170,000, not counting Social Security.
Do you think employees seeing such a disparity in the executives’ financial security and their financial security can have an impact on their engagement at work? Their concern for the company? They’re working hard, yet most of the spoils are going to a few, the fat cats. They see this and wonder why they get a measly 3% annual increase, if that.
If your firm has such a disparity in retirement packages, you may want to take a look at it closely. Why is it there? Can you change it? How much value are the executives bringing? Think objectively – not based on what they tell you. You may find that leveling the field a bit can reap enormous benefits in the workforce.