I don’t know if you have been paying attention to the skyrocketing executive compensation packages that have been in the news lately. What really got my attention was the fact that the top 20 equity and hedge fund managers raked in an average of $657.5 million. Or to put it in terms we can understand, that’s 22,255 times the pay of the average worker. If you look at the top executives in the Fortune 500 companies, they averaged $10.8 million in total compensation, which is 365 times the pay of the average American worker. Now, to further put that into perspective, workers at the lowest rung of the economic ladder just got their first federal minimum wage hike in a decade which amounts to only a paltry $2.10 per hour. Where is America headed and how does it hurt the fabric of society?

When you compare these excessive salaries that corporate executives make to other leaders in other sectors, here is how they stack up. From an article on alternet.org, the top 20 CEOs of publicly traded corporations last year took home, on average, $36.4 million. This is 38 times more than the top 20 in the nonprofit sector and 204 times than the 20 highest-paid generals in the army.

The impact of this gross disparity in compensation essentially means that as a society, we are diverting needed leadership talent from less lucrative fields, such as education, research or medicine. Can you imagine what our schools would be like if we had the best and the brightest people working in these areas?

So, what can we do about it? What would be the necessary steps that would address this outright social injustice that leaves the middle and lower class stagnant without much hope? This article highlights six pragmatic steps that could be taken to address this grotesque imbalance in society.

1) Eliminate tax subsidies for excessive CEO pay, which would close a tax loophole that allows corporations to deduct excessive CEO pay packages as a “business expense.”

UFE estimates that by closing that loophole alone there would be $1.4 billion in extra tax revenues — enough to pay the annual salaries of 29,000 teachers and reduce class sizes in overcrowded schools, the study says.

2) End the preferential tax treatment given to private investment company income.

That would plug the loophole in the current tax code that allows equity and hedge fund managers to pay taxes at a lower rate than average Americans. Closing that loophole, the Economic Policy Institute estimates, would add $12.6 billion to the federal treasury, which could be used to fully fund a five-year expansion of the public health insurance program for low-income kids.

3) Cap tax-free ‘deferred’ executive pay.

Tax-free deferred pay is unlimited for corporate executives but strictly limited by average workers enrolled in standard 401(k) plans.

4) Eliminate the tax reporting loophole on CEO stock options.

Because corporations are allowed to report one set of executive stock option figures to investors and another to the IRS, it allows corporations to get tax deductions that far exceed companies’ reported expenses, according to the U.S. Senate Permanent Subcommittee on Investigations.

5) Link government procurement to executive pay.

The feds should deny procurement contracts to firms who pay top executives more than 25 times what their lowest-paid workers make. “The federal government currently denies contracts to companies that foster racial and gender inequality. The same principle could be invoked to deny contracts to companies that increase the nation’s economic inequality,” the study proposes.

6) Increase the top marginal tax rate on high incomes.

The report notes: “… any move to restore mid-20th century top marginal tax rates would raise substantial revenue for investments in education and other social programs that could significantly broaden economic opportunity.”

This really is class warfare. And, from where I stand, the other side is winning. But it is more than just a disparity in compensation, it affects the whole fabric of society. And, for those who would argue that the gross pay differentials are necessary to compete in the global marketplace, they are wrong. Because the top executives of major European corporations last year earned three times less than their American counterparts. So, it’s time we start taking steps to correct this economic inequality. It has gone on too long.