This month, a new organization called the Wagemark Foundation opened shop for the first time in Toronto, with a goal of reducing income inequality.
Corporations, non-profit and other organizations will sign on with Wagemark. They'll be certified as organizations that are working toward a better salary ratio between their highest and lowest paid employees. The target is 8:1. So, if the lowest paid employee is taking home $40,000, the highest earner will be paid no more that $320K.
Wagemark's Executive Director Peter MacLeod says the foundation feels society would benefit by having a rule of thumb about what constitutes fair pay. The idea is based in the writings of Business Theorist Peter Drucker in the Wall Street Journal in the mid-'70s, and began, in part, as a response to the Occupy Movement that focused on the disparity between the so-called rich, and everyone else.
In some Fortune 500 companies, the current ratio of earnings between highest and lowest paid employees runs in the neighbourhood of 300:1.
Click 'Listen' to hear Peter MacLeod.