The table below shows the salaries for the top 100 CEOs in America.
In the Spring of 2019, Abigail Disney, the granddaughter of Walt Disney, called on executives at
the media conglomerate to give 50 percent of their annual bonuses to the lowest paid employees at the company.
CEO Bob Iger and five members of his leadership team are estimated to earn $62 million in bonuses this year alone, according to CNN.
But if Abigail Disney had her way, roughly $31 million of that would be distributed amongst the lowest paid 10 percent of employees that make up the company's
massive 200,000 person workforce.
"Besides, at the pay levels we are talking about, an executive giving up half his bonus has zero effect on his quality of life," she wrote in her op-ed.
"For the people at the bottom, it could mean a ticket out of poverty or debt. It could offer access to decent health care or an education for a child."
(1) If the Disney CEO distributed 1/2 of his $65.6 million dollar compensation to the lowest paid 10 percent of employees that make up the 199,000 employees at
the company, how much would each of those employees receive?
(2) If the Oracle co-CEOs only made $54.15 million each and the other $108.3 million was distributed among their 138,000 employees,
on average, how much more would each of those 138,000 workers make?
(3) If Mark Zuckerberg wanted to give each of his employees a $500 bonus out of his compensation, how much money would he still make?
Article about CEO Compensation
Solution to the Problem:
(1) Each of those 19,900 employees in the lowest 10% would receive an additional $1,648.24.(2) Each employee would receive an additional $784.78.
(3) Mark Zuckerberg would still make $10,047,500.
In the Disney calculation, half of Iger's salary would be $32,800,000. Then divide that by 10% of 199,000 (which is 19,900) to get $1,648.24.
In the Oracle computation, divide $108,300,000 by 138,000 to get $784.78.
In the Facebook problem, multiply 25,105 (the number of employees) by $500 to get $12,552,500. Then subtract that amount from Zuckerberg's compensation to get $10,047,500.
Correctly solved by:
| 1. Ivy Joseph | Pune, Maharashtra, India |
| 2. James Alarie | Flint, Michigan |
| 3. Ruger Hewitt |
Mountain View High School, Mountain View, Wyoming |
| 4. Jonathan Punke |
Joliet Central High School, Joliet, Illinois |
| 5. Brijesh Dave | Mumbai City, Maharashtra, India |