Relative Worth

Are 4-star generals lousier & less talented leaders than corporate CEOs? Are qualified 4-star generals “less scarce” than qualified CEOs (the economists’ way of looking at the pay-for-talent issue)?

The ratio of average CEO pay to average worker pay in BigCos in the U.S.A. is about 250:1. The ratio of 4-star generals’ pay to the average soldier’s pay in the U.S. military is about 6:1. For a 1-star general that drops to about 4:1.

Your S.A.T. task today is to explain the above in 25 words or less …

Tom Peters posted this on December 22, 2006, in Leadership.
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