American CEOs Earned 196 Times More Than Average Employees in 2023 – The Average Joe

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    American CEOs Earned 196 Times More Than Average Employees in 2023

    Rhea Lobo

    June 10, 2024

    Executive salaries are climbing up the corporate ladder — leaving workers behind. As living costs rise and inflation bites, the average S&P 500 CEO now pockets a hefty $16.3M each year. To put it in perspective, it would take the average employee nearly 200 years to earn what their CEO makes in just one year.

    • The average pay for S&P 500 CEOs pay package shot up by 12.6% year-over-year, while workers saw a mere — dwarfing the 4.1% wage increase. Shockingly, some CEOs enjoyed raises of over 50%.
    • From 2010 to 2023, the median pay for S&P 500 CEOs surged by 63%, while the S&P 500 index soared by 462%, including dividends, according to FactSet, showing a strong link between stock prices and CEO compensation.

    Legislation keeps a close eye: The spike in CEO pay is part of a pattern where top executives gain considerable wealth, largely fueled by stock market gains, as CEOs rake in hefty sums through stock awards. With companies posting record profits and stock prices hitting new highs, the Dodd-Frank law now requires that companies disclose how market fluctuations affect CEO stock holdings. This transparency sheds light not only on base salaries but also on stock values, exposing the widening gap between CEO and worker pay.

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