A respondent writes that at a California communications-equipment company, "The CEO was given an $11 million raise plus stock options." According to a communications engineer, "The CEO received $17 million in 1995."

With each merger, and each new chief executive hired, the wage package offered soared, often into the millions. A publication of the United Auto Workers notes that "in 1965 the average top executive at the biggest companies made 45 times what the average worker made. Last year top execs made 212 times the average workers."

Pay is incredible

We asked readers, "Do you think the spread between CEO and engineer's pay at your company is too large? " Six out of 10 agreed with this software engineer: "The pay differential between the average worker and any member of upper management is incredible. We get three percent; they get millions in bonuses and stock options!"

Others defended their bosses. "Our CEO works a lot harder than I do and he is worth it," says a California engineer. A senior engineer points out, "He founded the company 10 years ago and now employs over 300. He's earned every penny.

Compensation studies show that the widening gap between e xecutives and workers may be attributed more to stock options than to salaries. For instance, a Coopers & Lybrand study of newly-public high-tech companies reports an average salary for founders was $206,000, which by itself would represent only a 3X differential from the average engineer. However, options can swell the CEO income package into the millions if the stock market and the company thrive (see related story, Career chapter, on stock options).

Others see the relationship between CEO and worker salaries as out of whack. "CEOs should never get bonuses when a company has a flat year," wrote one respondent.

According to an Illinois project engineer, "The company should reward those who are pushing the product out the door."

"The differential could have hired hundreds of engineers who have been laid off or otherwise not hired," writes a Maryland engineer. "Now we are hiring but availability of good people has been lost!"

Some took the tack of this Washington state engineer: "I believe CEO pay in the U.S. is high compared to other countries. It is also high compared to top pay scales within engineering. Maybe this means top engineers' pay scale is too low." Another agreed, "I believe a five to 10 times spread would be more equitable."

Not to worry?

A Pennsylvania senior engineer thinks we're making too big deal of this. "I tend not to worry too much about these differences, focusing more on my requirements and how well I feel compensated for my level of education and performance."

Rep. Martin Sabo, D-Minn., submitted legislation that would deny corporations the right to deduct compensation exceeding 25 times the lowest salary of any full-time worker.

One reader objected to any attempts to mandate salaries with a flat "This is America."

An Arizona project engineer offered this backhanded defense of CEO pay: "The risks associated with the job are commensurate with the pay. Most of these guys seem to age really fast, so they better be able to afford a really good health plan!"

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