CEO Pay Has Soared 1,322% Since 1978 But Typical Worker Pay Barely Rises 18% In The Same Time

  • The Economic Policy Institute finds that CEO pay in the US rose by a staggering 1,322% between 1978 and 2020, but the pay increase of the typical worker was just 18% during that same period.
  • “Exorbitant CEO pay is a major contributor to rising inequality that we could safely do away with.” -Lawrence Mishel and Jori Kandra, Economic Policy Institute.
  • CEOs saw their compensation increase by 18.9% between 2019 and 2020 while the pay of typical workers rose just 3.9% over that time.

Jake Johnson, Common Dreams from Rawstory writes:

“A new analysis released Tuesday by the Economic Policy Institute finds that CEO pay in the United States rose by a staggering 1,322% between 1978 and 2020—a sharp contrast to the pay increase of the typical worker, which was just 18% during that same period.

“Exorbitant CEO pay is a major contributor to rising inequality that we could safely do away with.”
—Lawrence Mishel and Jori Kandra, Economic Policy Institute

In 2020, a year of pandemic and widespread economic dislocation, the top executives at the largest public firms in the U.S. were paid 351 times as much as the typical worker, with CEO pay measured by salary, bonuses, long-term incentive payouts, and exercised stock options. According to Bloomberg, Tesla’s billionaire CEO Elon Musk was the highest-paid corporate executive in the U.S. in 2020.

Highlighting the extent to which inequality has soared in recent decades, EPI observes in its report that the CEO-to-worker-pay ratio was 61-to-1 in 1989.

CEOs saw their compensation increase by 18.9% between 2019 and 2020 while the pay of typical workers—those who were able to hold on to their jobs amid mass layoffs stemming from the pandemic—rose just 3.9% over that time, EPI shows…”

See full story here.



Categories: Business, Labor

Tags: , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: