: Average CEO pay is now 399 times more than a typical worker’s wage — and one-third of that rise happened in the last three years

by | Oct 4, 2022 | Stock Market

It pays to be the top dog. Pay for chief executive officers rose by just over 11% from 2020 to 2021, according to a new report by the left-leaning Economic Policy Institute. Compared with the typical worker’s pay, CEOs were paid 399 times as much in 2021, the highest multiple on record, EPI said. In 1965, CEOs were paid 20 times what the average worker made.

On average, CEOs were paid $27.8 million in 2021, the institute said. And CEO pay has risen by 1,460% since 1978. CEO compensation rose 36% faster than the stock market during this period, the EPI noted, and “far eclipsed the slow 18.1% growth in a typical worker’s annual compensation” over that span, in 2021 dollars. “Exorbitant CEO pay is a contributor to rising inequality that we could restrain without doing any damage to the wider economy,” Josh Bivens, the director of research at EPI and one of the report’s authors, said in a statement. “We need to enact policy solutions that would both reduce incentives for CEOs to extract economic concessions and limit their ability to do so,” he added.

‘Exorbitant CEO pay …

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