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Top US CEOs make 330 times more than average employees – study

Published time: June 02, 2014 15:36
Reuters / Michael Kooren

Reuters / Michael Kooren

The average employee in the US will have to work 331 years to earn the annual salary of an average Fortune 500 CEO, according to the AFL-CIO’s 2013 Executive Paywatch.

The ratio of CEO pay to worker pay has increased by more than 500 percent in the last thirty years. In 1983, the average CEO made 46 times the average worker's pay packet. The ratio quadrupled through the decade to 195 times in 1993. Highly paid CEOs of companies employing low wage earners are fueling economic inequality, which continues to grow.

The CEO salary data was sourced from the US Securities and Exchange Commission (SEC) and the US Bureau of Labor Statistics (BLS) data for the latest fiscal years, covering around 3,000 corporations, most listed in the Russell 3000 Index.

America is considered to be the land of opportunity, however in recent decades, corporate CEOs have been taking a greater share of the economic pie. The wage of chief executives is constantly growing, while the salary of the average worker has stagnated and unemployment remains high.

A separate study by Equilar for AP, says that the typical CEO now makes 257 times the average worker's salary, soaring from 181 times in 2009. Moreover the average employee experienced a 1.3 percent salary rise in 2013 against 8.8 percent of an employer. The study based on 337 companies’ data, showed that the median pay package of top US CEOs in 2013 has hit $10.5 million.

source: www.aflcio.org

Comments (14)

 

AK 01.09.2014 00:57

In the 60's Toshiba was facing bamkupcy due to the prolonged labour diuspute. new President Doko cut 50% pay cut by himslef and ordered the executives totake 40% cut. He slod all companiy cars used to commute executives and tols executives to take commuter trains to come to the company. He himself took commuter train. Then he went to the trade union and saked tohem to work with him to save the compamy. it worked. This is why we now have Toshiba computers.

 

sale Hillal 13.08.2014 20:28

That is costing the low end wage earners a bundle. They will work for 75% less if required to.

 

frank 12.08.2014 19:21

kill them all

View all comments (14)
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