Disney is the model for capitalism, but is it becoming socialistic?
Since the rise of the 1% social movements, the growing trend of income inequality and the new economic reality is perplexing economists (very low unemployment rates but very little average workers’ wage increases). Now the granddaughter of Walter Disney, Abigail, is trying to get Disney’s executives to see the light and share the wealth.
According to a Fortune magazine article, Disney’s CEO makes over $65 million a year – which is 1,400 times the wage of an average Disney workers’ wage. To quote one of Abigail Disney’s tweets:
“By any objective measure a pay ratio over a thousand is insane.”
Abigail Disney is urging all Disney executives to redistribute 50% of their performance bonuses to the some of the lowest paid workers at Disney.
If that is not an affront to U.S. capitalist systems, I do not know what is.
However, this may be a wake-up call for the U.S. to rethink its position on executive pay. An oppressed group will always rise up against their oppressor. It may come quickly or it may take 800 years like it did to overthrow the Roman Empire.
Some think the U.S. is on the verge of a social democratic uprising, particularity with the new political leaders such as Ilhan Omar and Alexandria Ocasio-Cortez.
Perhaps it is not about a political and economic revolution, perhaps it is about fairness – specifically wage fairness. HR departments could take a lead role in developing fair compensation packages that are reflective of the needs of workers, executives, and shareholders.
When will that happen? Will Disney be the new leader of the Social Democrat movement in the U.S.? Will they take on capitalism and convince those who have more of the wealth to share the wealth with those who don’t?
Discussion questions
What are your thoughts on the gap between executive pay and the average worker’s pay?
Should governments get involved and create legislation that limits the income gap between executives and average workers? Discuss the pros and cons of such legislation.
What should HR departments do to help address the income gap issue?