Insight #364:
A funny thing happened on the way to the fish market…
But first, let’s talk about the article that Forbes magazine published in August 2025. I don’t think Forbes readers fall in the economic middle class. And surely it is not a magazine bought by the poorer classes. So, I find it very telling when Forbes takes aim at their loyal readers, the more-than-enough class, by highlighting the growing wage gap with an article titled: “The Wage Gap Between CEOs And Workers Is Widening—And This Popular Company Is The Biggest Offender.”
I know you want to know who the biggest offender is, so let’s get that out of the way. The biggest offender, according to the article, is… Starbucks! There, the wage gap is a staggering 6,666 to one. Meaning? For every dollar earned by the average worker at Starbucks, the CEO gets $6,661. Nice gig, if you can get it.
You can read all about this and other over-the-top CEO pay hogs in the latest “Executive Excess” report published by the Institute for Policy Studies.
Please note that this report came out before a certain over-the-top CEO threatened to quit his car company unless the board agreed to a one trillion dollar compensation deal. I know, I know, the deal comes with performance targets, but guess at which organization level targets are, well, let’s call it “massaged.” (By the way, this CEO’s board agreed to his demand, which just goes to show that certain boards do not work for their shareholders, but for their CEO.)
Hold on. You are probably now wondering about my leanings. Left, right, center, or other? Well, I used to be a staunch capitalist. My degree in economics left little room for doubt: capitalism beats every other ism.
But.
But what we have today does not come close to the capitalism I studied. Nor the one that launched my career as a… wait for it… an economist. What we have today is pirate capitalism. Or to use its modern, more politically correct name, amoral profiteering. In days gone by, we outlawed piracy, and rightly so. Today, people in safe, lofty towers openly celebrate it.
What happened to the dream of no, not social capitalism, but responsible capitalism? It remains in sad short supply.
Let me be clear. I don’t have any issues with CEOs who pay themselves high wages. Not at all. If they deserve it, why ever not? My issue is with CEOs who willfully pay low wages… so that they can earn kingly sums. They are Robin Hoods in reverse.
Let’s now get back to the title of this rant, I mean this post. How can you tell if your company is starting to smell? Here’s a hint based on a Ghanaian proverb:
“When a fish rots, the head stinks first.”
Welcome to my side of the nonsense divide.
. . .
Quote of the Moment:
“The word capital has many meanings, like chief and first. Which is why capitalism now means Chief First.” The Chief Nonsense Officer.
. . .