SEGMENT ONE – 8:15 a.m.
GUEST: Dr. Greg Nagel, professor in the MTSU Department of Economic and Finance
TOPIC: Nagel’s decades of research into the CEO-worker pay gap
This spring, Nagel and Claudio Fernández-Aráoz, a frequent lecturer at Harvard Business School, co-authored commentary published by Fortune magazine titled “The real reasons the CEO-worker pay gap spiraled out of control in America—and what to do about it.”
Here are the first few graphs of the piece:
If American corporations want to regain their global leadership, visionary boards should be drastically reviewing the way they are appointing and compensating their top leaders, while leading a major cultural change and reskilling all workers.
Back in 1965, CEOs earned 21 times more than the average worker; by 2023, this ratio had escalated to 290 times. The situation is even worse for 100 out of the S&P 500 corporations, where in 2022 this ratio was 603 times. As a result, real (inflation-adjusted) CEO compensation in large firms increased by 878% from 1978 to 2022, while real worker compensation rose by 4.5% during this period.
Between 1938 and 1970 it was workers who increased their pay in constant terms; from 1970 on, it was large-firm CEOs who increased their real income more than 900%.
Strikingly, before 1970, large firms’ real value grew at its highest rate of 6.1% per year, yet their CEO pay growth was 0.1% per year. In stark contrast, after 1970 the growth in large firms’ real value declined to 5.2% per year, while their real CEO pay increased by 4.6% per year (921% total through 2022). Clearly, increased pay has not been driving performance up.
To fix the pay gap between the C-Suite and workers, the authors propose four initiatives that are outlined in the commentary:
- Hire and select CEOs with a greater focus on values and potential.
- Drastically change compensation perspectives and practices.
- Build a collaborative culture.
- Urgently commit to reskilling the American workforce.
Nagel said his research on the topic started 45 years ago with an extraordinary experience while working as a co-op student at General Motors. This spring, he authored a detailed analysis over the 45 years. That report was requested by a regional CEO, Greg Merriman. Shortly after the UAW strike in 2023, he wondered why workers were increasingly dissatisfied with their pay. His question inspired Nagel to pull the 45 years of research together.
SEGMENT TWO – 8:30 a.m.
GUEST: Cynthia Allen, environmental specialist with MTSU Civil Engineering and Environmental Services Department
TOPIC: MTSU’s Stormwater Program co-sponsoring recent community education and awareness events on gardening and boating
Two free and engaging upcoming events on back-to-back Saturdays are being offered to residents in Rutherford and surrounding counties with assistance from Middle Tennessee State University faculty and staff.
MTSU Facilities Services’ Stormwater program is partnering with several local organizations to host or sponsor:
- The Rutherford County Garden Extravaganza was held from 9 a.m. to noon Saturday, June 14, at Lane Agri-Park,315 John R. Rice Blvd., in Murfreesboro.
- The 17thannual Boat Day from 9 a.m. to 1 p.m. Saturday, June 21, at theJefferson Springs Recreation Area, 7660 W. Jefferson Pike, in Smyrna.
“Both are events for outreach, education and fun, where people can learn about gardening in your garden and safety information about boating at a neat location,” said Cynthia Allen, environmental specialist with MTSU Facilities Services’ Civil Engineering and Environmental Engineering Services Department.
Both events will highlight various pollution prevention strategies to protect local waterways.
Open to all ages, Boat Day activities will include kayaking, canoeing, pot painting and storm water diorama.
This event helps educate the community on the importance of water quality and paddling safety. Canoes, kayaks and equipment will be provided. There is no cost to participate and all ages are welcome. Participants under 18 must be accompanied by an adult. Walk-ups are welcome.
SEGMENT THREE – 8:45 a.m.
GUEST: Dr. Beka Moore, director of MTSU’s Career Development Center
TOPIC: Career Development Center services available to students and alumni as well as a recent digital badge addition to …
The MTSU Career Development Center serves students and alumni as they transition from university life to the workplace.
The center advises students to visit its offices in Room 328 of Keathley University Center at the beginning of their academic careers in order to use and apply those resources by their junior or senior year. But any student, regardless of age or class, or alumni can utilize the center and its services.
The center uses exposure-experience mapping that coincides with the student’s academic map to determine what experience they need to complement their academics, Moore explained.
The Career Leadership Badge Program was recently launched by the center as a free program that allows students to access career resources asynchronously.
The center offers resources for all majors, allowing students to curate the materials they need for their major and desired career.
