Final answer:
The statement that few CEOs earn more than $300,000 is incorrect; CEO compensation has significantly increased, with them now earning on average 350 times that of an average worker. Executive salaries surpass the $300,000 figure, with income disparity widening since the 1980s.
Step-by-step explanation:
The statement that few CEOs make more than $300,000 a year is not accurate when examining the financial rewards of being a manager in the current economic climate. The disparity between the executive pay and that of average workers has significantly increased, particularly since the 1980s. According to Manuel Castells, the wealth and pay gap have widened, with CEOs earning, on average, 350 times that of an average worker up from less than 50 times in 1983. This suggests that the compensation for top executives far exceeds the $300,000 mark.
The rise in CEO salaries is also echoed by the winner-take-all labor market theory, which indicates that the salary gap is attributed to factors beyond education, like global demand for top-tier talent. This theory amplifies the division between median worker earnings and those of the top 1 percent. Hence, the salary range for high-level executives such as CEOs has grown to reflect the significant responsibilities and the perceived value they bring to their organizations.
Moreover, during the period leading up to the financial crisis and the Occupy movement, major financial institutions awarded substantial bonuses to top executives while being bailed out by government funds, further emphasizing the high earnings potential for CEOs and managers at top levels.