The focus: why inequality endangers our economy!

The focus: why inequality endangers our economy!

Laimgrubengasse 10, 1060 Wien, Österreich - Am Fat Cat Day On January 8, 2025, Julia Herr, the deputy club chairman of the SPÖ, criticized the unequal distribution of income in Austria. She found that the board members of the large listed companies earn an average of EUR 3.1 million a year, which corresponds to 814 euros per hour. This ratio is in no reason not a sensible connection to the salaries of the average workers who suffer from the increasing cost of living, while the top managers remain unaffected. "The salaries of the CEO are 81 times the average content and they only need to work 48 hours to earn the average annual salary," says Herr. It calls for a fair renovation of the budget and an appropriate ratio of top salaries to the income of employees in the company, such as on ots.at reported.

sales and employee productivity in focus

Another important aspect is the sales that each employee generates. According to ISTESSELTBAR.de , sales per employee is around 219,316 euros per year. In the top 25 percent of the service providers, each employee even generates around 117,000 euros a year. In order to work economically, an employee in the service industry should contribute around 200 percent of his personnel costs. This raises questions about the efficiency and appreciation of employees, especially in view of the exorbitant income of the company board members.

It is obvious that the discrepancy between the top salaries and the usual income of the average workers will spark a heated debate about the distribution of wealth in Austria. Lord of putting the salaries of the management level in an appropriate relationship reflect the urgent need to take a look at economic fairness.