Wages

21st Century CEOs Make More

The 21st century has worked wonders on the wallets of Chief Executive Officers. For the top 350 largest firms in the United States, CEOs have received a hefty payday compared to both their employees and to CEOs of the past.

The metric the Economic Policy Institute used to analyze this pay ratio included realized stock options along with salaries, bonuses, restricted stock grants, and long-term incentive payouts to calculate the total take-home pay for CEOs. Even top earning employees at these companies still, on average, make 5 times less than their executives, while wage growth has remained flat for the average worker.

The significant pay raise for the heads of these major companies came at the end of the 20th century when, between 1978 and 2000, the compensation for CEOs widened by over 1,200 percent.

Description

This chart shows the CEO-to-worker pay ratio for the top 350 companies from 1965-2017.

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CEO-to-worker compensation ratio for the 350 largest publicly owned companies in the United States from 1965 to 2024
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Pay gap between CEOs and average workers in the United States in 2012, by sector
Ranking of CEO-to-worker compensation ratio of top publicly owned companies in the United States in 2012
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Companies with the highest CEO-to-worker wage ratio in the United States in 2020
Ratio between CEO and average worker pay in 2018, by country
If the average worker in a company has an annual income of $50,000, what is the maximum amount the CEO of that company should make?

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