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Japan VS. USA Executive Compensation

In recent years, there has been much discussion about the low salaries of Japanese executives compared to their Western counterparts. This trend can be observed across a range of industries and is reflective of the cultural and business practices of Japan. In this article, we will explore some actual salary examples to better understand this phenomenon. To begin with, let us consider the case of a CEO in Japan compared to the same position in the United States. According to a 2021 report by the Economic Policy Institute, the average CEO-to-worker pay ratio in the US is 320:1. This means that on average, a CEO in the US earns 320 times the salary of an average worker. In Japan, the ratio is much lower at 16:1, which means that a Japanese CEO earns 16 times the salary of an average worker. To put this into actual salary figures, the average CEO salary in Japan is around 35 million yen (about $310,000 USD) per year, while in the US it is around $12.7 million per year.   Even wit...