Why CEOs Earn 315X More Than Their Average Worker (3 Lessons)!

According to a 2020 report, the average CEO now earns 351 times as much as their typical worker.

Let that sink in.

That means that for every dollar the typical worker earns, the CEO earns $351.

Now, whether that´s justified or not, the real question is:

Why does the average CEO earn 351 times as much as their typical employee?

To answer that question, you always have to keep one rule of thumb in mind:

You get paid for the amount of value you can deliver.

But that´s not it. That doesn´t explain the massive discrepancy.

See, you could argue that Apple´s most important people are the ones who develop their outstanding products. But their product people are not the ones who´re paid the most.

No. Tim Cook made nearly $100M in 2021.

Why is that?

While we could talk about many things, right now, I want to focus on three things that — from my point of view — are some of the biggest factors that determine how much you get paid:

1. The uniqueness and depth of your skillset
2. The amount of leverage you can deploy
3. The risks you´re willing to tolerate

The reason Tim Cook is paid 1.400X more than the typical Apple employee is that…