Have and Have Not: The Widening Gap

August 1, 2014 3:17 PM

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The late Peter Drucker is widely viewed as the inventor of modern corporate management, although before his death he was discouraged by the short-sightedness of many business leaders. He was especially concerned about the widening pay gap between CEOs and the average worker--a trend he had observed with alarm for decades. As far back as 1984, Drucker had warned that the pay gap should not exceed 20-to-1. Anything beyond that, he believed, would foster mistrust and resentment and erode the kind of teamwork needed for long-term growth.

So why aren't workers marching and picketing and otherwise complaining about this inequity? Sure, there were some small worker protests and strikes last year in cities like Detroit and Seattle, but the minimum wage has hardly budged, and efforts to cap executive pay have been ineffective.

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