Last year, the typical compensation package for CEOs in the S&P 500 saw a 13% increase, far outpacing the gains for workers amidst rising inflation. The median pay for CEOs rose to $16.3 million, a 12.6% increase, while worker wages only saw a 4.1% rise. This disparity highlights the growing gap in earnings between executives and workers, fueling dissatisfaction among Americans about the economy.
In response to strong profits and stock prices, CEOs received significant pay bumps, with some seeing a 50% increase in their compensation. However, critics argue that the widening pay gap is exacerbating economic concerns.
Many companies are now tying CEO compensation to performance, with a focus on stock awards that are contingent on meeting specific targets. Despite efforts to align CEO pay with company success, the gap between executive compensation and worker wages continues to widen.
The study also revealed a lack of gender diversity in top executive roles, with only 25 of the 342 CEOs included in the data being women. Lisa Su, CEO of Advanced Micro Devices, was the highest-paid female CEO, earning $30.3 million in fiscal 2023.
Overall, the data underscores the growing disparity in compensation between CEOs and workers, raising questions about fairness and economic equality in corporate America.
Source: The Associated Press