Despite slower-than-anticipated growth and lower-than-expected profits, many corporations have generously rewarded their leaders, while simultaneously reducing lower-level staff salaries and benefits in an attempt to control costs. This disturbing practice only serves to further widen the gap between America’s wealthy few and its working class and clearly demonstrates just how little this country values its workforce.

At a time when most American workers are struggling to make basic ends meet and worrying how they’ll manage to save enough for retirement, many of this country’s corporate chief executives are stuffing their pockets with larger-than-life compensation packages that include high base salaries, stock options and ample pension plans. In 2004, the average chief executive’s salary at a large company was more than 170 times that of the average worker’s pay. Last year, executive salaries grew 25 percent, while that of the average American worker grew only 3.1 percent. 

Even when a company struggles, their CEOs are still rewarded. For example, the current CEO of a global manufacturing firm received over $11 million in compensation last year, despite the company’s $3.4 billion revenue loss, an 11-percent drop in stock value and a staff reduction of 17,000 workers. There are similar stories at corporations across the country. While worker pensions are frozen and many are asked to do without raises, CEOs manage to earn their multi-million dollar bonuses.

It’s no surprise that CEOs are cleaning up. Consider this: Corporations often use compensation committees to set their executive salaries. Many of these committees use outside consultants to help guide the process. These consultants are often already contracted to do other work for the company. The conflict of interest here is obvious: The consultant won’t upset the CEO -- and risk losing other contracts -- by setting a more realistic, performance based pay model.

Many corporate CEOs are, in short, getting over, and it is a slap in the face of every American worker. While it is understood that executive salaries would greatly exceed that of the average worker’s, there is no logical argument to explain why the growth rate between the two is so dramatically different. To protect its workforce, corporate America must ensure worker’s salaries grow at rates that keep pace with the cost of living, while slowing the rate of growth of CEO salaries. Corporate boards must stop rewarding CEOs with multi-million dollar bonuses. It is unacceptable for a company to lay off thousands of workers and then turn around and pay an executive for a job well done.

As a country, we often ask our government to think about the needs of the average American, and rightly so. However, if America is to truly prosper, the corporations that feed our local economy must also consider and respect the well-being of average worker.

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Judge Greg Mathis is national vice president of Rainbow PUSH and a national board member of the Southern Christian Leadership Conference.