Nominal compensation into current year

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AS usual claims of record level CEO pay have been made by a number of news sources. Given the following data for large corporations, evaluate the accuracy of these claims.

Year                  Average CEO Compensation                     CPI

(in millions of U.S. $)                 

1990                 $1,456                                                   130.7

1994                 $2,800                                                   147.2

1998                 $4,955                                                   163.0

2002                 $9,680                                                   179.9

2006                 $11,015                                                 201.6

2010                 $8,750                                                   218.056

2014                 $13,500                                                 237.017

2016                                                                             238.782

1. Convert each nominal compensation into current year dollars and rank them (by year) from lowest to highest.

2. Determine how much the lowest compensated year from part "a" would have to have made in that year to equal the purchasing power of the highest compensated year from part a.

Reference no: EM131217550

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