Income gap widening between US CEOs and workers – AP/Equilar
According to data, the median compensation package for CEOs of the largest U.S. companies increased by 12.6% to reach $16.3 million in 2023. Read the Full Article at RT.com
TroibNews 
Top executives of the largest US firms earned an average of 200 times more than their employees last year, as reported by the Associated Press (AP) news agency, citing research conducted in collaboration with Equilar, a business intelligence firm. The data analysis revealed that the income of chief executives at major American companies increased at a significantly faster pace compared to that of their employees. This trend coincides with various polls indicating that many Americans are facing challenges due to the escalating costs of rent and groceries.
According to the study, the median total compensation for CEOs overseeing companies in the S&P 500 surged by 12.6% to $16.3 million in 2023. In comparison, the median earnings of S&P 500 employees climbed by 5.2% from the previous year, reaching just under $81,500. Total compensation encompasses salary, bonuses, stock, and other forms of remuneration received by top executives.
The highest-earning CEO identified in the study is Hock E. Tan of semiconductor developer and manufacturer Broadcom, who earned $161.8 million in 2023. He was followed by William J. Lansing of Fair Isaac Corporation, a data analytics company focused on credit scoring services, who received total compensation of $66,349,962. Apple’s Tim Cook secured the third position with $63,209,845.
The rise in executive compensation has been linked to the pressure on corporate boards to continually escalate pay for high-performing CEOs to retain them within the organization.
Historically, top managers earned about 40 to 50 times the average worker's pay until the 1980s. However, in 2023, they earned approximately 200 times more than workers, indicating a significant increase. Brandon Rees, from a company managing a CEO-pay-tracking website, highlighted the implications of this pay gap, mentioning a culture where CEOs are portrayed more as superstars rather than team players.
The increment in compensation packages for top managers coincides with the persistent challenge of inflation faced by the US. While the consumer price index has decreased from its 40-year high of 7.1% in 2022, the current rate of 3.4% still exceeds the 2% target set by the Federal Reserve.
The disparity in earnings between top executives and workers contributes to the general discontent among Americans concerning the state of the economy. Sarah Anderson from the Institute for Policy Studies noted that many Americans are feeling the pinch of inflation more acutely due to insufficient wage increases.
A recent poll in the US revealed that 51% of respondents perceived the economic conditions in the country as poor. Additionally, further research suggests that heightened inequality, escalating prices, and a widespread lack of affordable housing are factors contributing to a negative sentiment prevailing among the American populace.
James del Carmen contributed to this report for TROIB News
According to the study, the median total compensation for CEOs overseeing companies in the S&P 500 surged by 12.6% to $16.3 million in 2023. In comparison, the median earnings of S&P 500 employees climbed by 5.2% from the previous year, reaching just under $81,500. Total compensation encompasses salary, bonuses, stock, and other forms of remuneration received by top executives.
The highest-earning CEO identified in the study is Hock E. Tan of semiconductor developer and manufacturer Broadcom, who earned $161.8 million in 2023. He was followed by William J. Lansing of Fair Isaac Corporation, a data analytics company focused on credit scoring services, who received total compensation of $66,349,962. Apple’s Tim Cook secured the third position with $63,209,845.
The rise in executive compensation has been linked to the pressure on corporate boards to continually escalate pay for high-performing CEOs to retain them within the organization.
Historically, top managers earned about 40 to 50 times the average worker's pay until the 1980s. However, in 2023, they earned approximately 200 times more than workers, indicating a significant increase. Brandon Rees, from a company managing a CEO-pay-tracking website, highlighted the implications of this pay gap, mentioning a culture where CEOs are portrayed more as superstars rather than team players.
The increment in compensation packages for top managers coincides with the persistent challenge of inflation faced by the US. While the consumer price index has decreased from its 40-year high of 7.1% in 2022, the current rate of 3.4% still exceeds the 2% target set by the Federal Reserve.
The disparity in earnings between top executives and workers contributes to the general discontent among Americans concerning the state of the economy. Sarah Anderson from the Institute for Policy Studies noted that many Americans are feeling the pinch of inflation more acutely due to insufficient wage increases.
A recent poll in the US revealed that 51% of respondents perceived the economic conditions in the country as poor. Additionally, further research suggests that heightened inequality, escalating prices, and a widespread lack of affordable housing are factors contributing to a negative sentiment prevailing among the American populace.
James del Carmen contributed to this report for TROIB News
