CEOs of major American companies saw a substantial increase in their salaries last year, rising by almost 13%, while workers saw a more modest increase of 4.1%. This has resulted in a significant pay gap between executives and their employees, with CEOs earning an average of $16.3 million compared to the average private sector workers’ wages. The top earner in this analysis was Broadcom CEO Hock Tan, who received a pay deal worth $162 million, followed by executives from companies like Apple, Prologis, and Netflix.
The increase in CEO salaries has been attributed to strong profits and stock prices, with many companies facing post-pandemic challenges such as inflation and higher interest rates. While some companies have linked CEO pay to performance, shareholders have called for more accountability in executive compensation. These pay packages often include stock awards that can only be collected if certain targets are met, such as achieving a higher share price or better operating profits.
The income disparity between CEOs and workers has raised concerns among economists and policymakers, with some arguing that it contributes to overall dissatisfaction about the economy. Despite the recent increase in wages for private sector workers, the growing pay gap has led to criticisms about fair compensation and income inequality. In addition, the gap between CEO and worker earnings continues to widen, with executives earning significantly more than their employees.
Overall, the analysis shows a significant disparity in compensation between CEOs and workers, with many top executives earning millions of dollars while their employees struggle to keep up with inflation and rising costs. The issue of executive pay has become a topic of debate and scrutiny, with calls for more transparency and accountability in how CEOs are compensated compared to their employees.
Article Source
https://www.euronews.com/business/2024/06/05/ceo-pay-levels-rocket-up-almost-200-times-on-the-average-earner
