Why is there such a pay disparity between workers and upper management?

I work for a huge company that is global. I am an admin so I am a peon in the big picture but it is emotionally disheartening for me to watch the bigwigs in the company make up to 20X what the hourly employees make, and then they are always asking them to contribute equally to different charities, we do about 9 fundraisers a year. Upper management thinks that they should contribute the same amount as the hourly employees. Also, whenever we are not making productivity it is always the hourly workers that are losing money. Finally, my boss is alway saying that she is broke, and she makes 4X what I make, and so does her husband!!!! I told her if she wanted to truly feel broke, we should swap pay for about 2 months. I just can't feel bad for her when she is living in a $500,000 house and her and her husband have 3 mercedees. Usually, I don't even say anything, I just look at her like she is crazy, because if I say anything it probably would offend her.

You're right not to say anything. Upper management deifinitely have a sense of entitlement and the reason the people with higher education or positions are paid so much more is because they have the power to set the rules of pay scale within the company. So, the reason they are paid so much more is because of the way the company is structured. The ones in power hold themselves in priority higher than you or others starting. In short, greed.

Headaches

You are absolutely right.

And some execs make multi-millions. First sign of trouble means layoffs to the workers but no reduction in pay for the execs to save money. Unfortunately, that is how 99% of the business world runs, the people at the top protect themselves because they are in power, at the expense of the workers.

Because upper management determines the pay scale.

I understand your frustration. I feel that way about my parents. My dads a really hard worker whose been a GREAT provider. I believe its education or the fact you can make someone elses ego feel better in order to get where you want to go.

Maybe they took out a loan or something to pay for all that un needed stuff and thats why she may feel broke all the time.
But I can relate to how you feel.

It is harder to find upper management with the required experience, skill sets, and education. The truly effective bigwigs need a rare combination of charisma and skill. There can also me more risk for them in those positions. As an admin, if you mess up, you probably won't get fired. As an executive, if you mess up badly enough (or publicly), there is a good chance you will be fired. Some of them are just crazy overpaid though.

In my company, the guys at the top level of the union payscale make MORE than the lowest two rungs of management.

Your boss sounds like she needs to learn to budget. Human nature is that the more you make, the more you spend.