The Scenario The Director starts with an annual salary of $600,000 and gets a $60,000 raise each year The Janitor starts with an annual salary of $60,000 and gets a raise of 12% each year The Raw Data Year Director Janitor 1997 $600,000 $60,000 1998 $660,000 $67,200 1999 $720,000 $75,264 2000 $780,000 $84,296 2001 $840,000 $94,411 2002 $900,000 $105,741 2003 $960,000 $118,429 2004 $1,020,000 $132,641 2005 $1,080,000 $148,558 2006 $1,140,000 $166,385 2007 $1,200,000 $186,351 The Logarithmic Scale Year Director Janitor 1997 5.78 4.78 1998 5.82 4.83 1999 5.86 4.88 2000 5.89 4.93 2001 5.92 4.98 2002 5.95 5.02 2003 5.98 5.07 2004 6.01 5.12 2005 6.03 5.17 2006 6.06 5.22 2007 6.08 5.27
The Wage Gap Widens $1,400,000 $1,200,000 $1,000,000 $800,000
Director
$600,000
Janitor
$400,000 $200,000 $0 1
2
3
4
5
6
7
8
9
10 11
The Ratio is Reduced Ratio 10.0 9.8 9.6 9.3 8.9 8.5 8.1 7.7 7.3 6.9 6.4
12.00 10.00 8.00
Director
6.00
Janitor
4.00
Ratio
2.00 0.00 1
2
3
4
5
6
7
8
9
10
11