CEOs made nearly 200 times what their workers got paid last year

Loulit01 · Jun 4, 2024

NEW YORK (AP) — The typical compensation package for chief executives who run companies in the S&P 500 jumped nearly 13% last year, easily surpassing the gains for workers at a time when inflation was putting considerable pressure on Americans’ budgets.

The median pay package for CEOs rose to $16.3 million, up 12.6%, according to data analyzed for The Associated Press by Equilar. Meanwhile, wages and benefits netted by private-sector workers rose 4.1% through 2023. At half the companies in this year’s pay survey, it would take the worker at the middle of the company’s pay scale almost 200 years to make what their CEO did.

Sarah Anderson, who directs the Global Economy Project at the progressive Institute for Policy Studies, believes the gap in earnings between top executives and workers plays into the overall dissatisfaction among Americans about the economy. “Most of the focus here is on inflation, which people are really feeling, but they’re feeling the pain of inflation more because they’re not seeing their wages go up enough,” she said.

CEOs made nearly 200 times what their workers got paid last year

The typical compensation package for chief executives who run companies in the S&P 500 jumped nearly 13% last year, easily surpassing the gains for workers at a time when inflation was putting considerable pressure on Americans’ budgets.

apnews.com

Our economic problems in a nutshell.

NatMorton · Jun 4, 2024

Loulit01 said:
NEW YORK (AP) — The typical compensation package for chief executives who run companies in the S&P 500 jumped nearly 13% last year, easily surpassing the gains for workers at a time when inflation was putting considerable pressure on Americans’ budgets.

The median pay package for CEOs rose to $16.3 million, up 12.6%, according to data analyzed for The Associated Press by Equilar. Meanwhile, wages and benefits netted by private-sector workers rose 4.1% through 2023. At half the companies in this year’s pay survey, it would take the worker at the middle of the company’s pay scale almost 200 years to make what their CEO did.

Sarah Anderson, who directs the Global Economy Project at the progressive Institute for Policy Studies, believes the gap in earnings between top executives and workers plays into the overall dissatisfaction among Americans about the economy. “Most of the focus here is on inflation, which people are really feeling, but they’re feeling the pain of inflation more because they’re not seeing their wages go up enough,” she said.

CEOs made nearly 200 times what their workers got paid last year

The typical compensation package for chief executives who run companies in the S&P 500 jumped nearly 13% last year, easily surpassing the gains for workers at a time when inflation was putting considerable pressure on Americans’ budgets.

apnews.com

Our economic problems in a nutshell.

Median pay of the S&P 500, yes. Those are huge, complex companies and it makes sense that's where the most highly paid CEOs would be. Boards and investors have no reason to pay a CEO more than he or she is worth, so it's reasonable to see $16m as the market rate. You may not like that, but try running your $50b global enterprise for less.

From memory, the median CEO compensation for public companies is something like $700k/yr. Though that makes for a far less interesting headline.

ttwtt78640 · Jun 4, 2024

If Walmart cut their CEO’s pay by $18M/year then they could give each Walmart employee a $9/year raise.

NatMorton · Jun 4, 2024

ttwtt78640 said:
If Walmart cut their CEO’s pay by $18M/year then they could give each Walmart employee a $9/year raise.

Now, now. Don't go ruining a perfectly good narrative with math.

ttwtt78640 · Jun 4, 2024

NatMorton said:
Now, now. Don't go ruining a perfectly good narrative with math.

We commonly see this wage inequality (unfairness?) theme addressed, yet never see “this is the wage someone (everyone?) in job (position?) X should be paid”. This was partially done via legislation like the Davis-Bacon Act, but those “prevailing wage” amounts also vary by geographic location (county) and only appy to work performed on federally funded contracts.

Wage and Hour Division Davis-Bacon Wage Determination Conformance Request Guide, September 2021

www.dol.gov

NatMorton · Jun 4, 2024

ttwtt78640 said:
We commonly see this wage inequality (unfairness?) theme addressed, yet never see “this is the wage someone (everyone?) in job (position?) X should be paid”. This was partially done via legislation like the Davis-Bacon Act, but those “prevailing wage” amounts also vary by geographic location (county) and only appy to work performed on federally funded contracts.

Wage and Hour Division Davis-Bacon Wage Determination Conformance Request Guide, September 2021

www.dol.gov

IMO, it's all based on the same fallacy that drives so much of the progressive left's thinking on economic matters: the simplistic notion that poor people are poor because rich people are rich. They look at CEOs and think "they've taken the workers' money."

It's all rather childish.

Napoleon · Jun 4, 2024

ttwtt78640 said:
We commonly see this wage inequality (unfairness?) theme addressed, yet never see “this is the wage someone (everyone?) in job (position?) X should be paid”. This was partially done via legislation like the Davis-Bacon Act, but those “prevailing wage” amounts also vary by geographic location (county) and only appy to work performed on federally funded contracts.

Wage and Hour Division Davis-Bacon Wage Determination Conformance Request Guide, September 2021

www.dol.gov

They can’t even agree on what they think the minimum wage should be let alone something as complex as role-based compensation.

ttwtt78640 · Jun 4, 2024

NatMorton said:
IMO, it's all based on the same fallacy that drives so much of the progressive left's thinking on economic matters: the simplistic notion that poor people are poor because rich people are rich. They look at CEOs and think "they've taken the workers' money."

It's all rather childish.

They also tend to forget that an employer (job creator) is likely to offer little (or no) more employee compensation (pay and fringe benefits) than that required to attract and retain qualified labor.

Slartibartfast · Jun 4, 2024

The wealth gap is a large reason why society is becoming destabilized.

ttwtt78640 · Jun 4, 2024

Napoleon said:
They can’t even agree on what they think the minimum wage should be let alone something as complex as role-based compensation.

The term “living wage” is often used in that context, but that usually involves factors unrelated to the job (position) itself, such as household size, with the assumption that someone working an entry level full-time job should be able to support a ‘typical’ household.

Napoleon · Jun 4, 2024

ttwtt78640 said:
The term “living wage” is often used in that context, but that usually involves factors unrelated to the job (position) itself, such as household size, with the assumption that someone working an entry level full-time job should be able to support a ‘typical’ household.

That rabbit hole always reminds me of those “reality” real estate shows on HGTV.

Husband: I pet sit hamsters for a living.
Wife: I’m a stay at home mom.
Together: Our budget? 10 gazillion dollars!

Helix · Jun 4, 2024

I think of upper management as a wage tax. They get a good chunk of my salary, and there's nothing I can do about it. Given this, I want the same thing from them : nothing. No bold moves, no inconvenient initiatives, no faux appearances. Nothing. I don't even want to know their names. Just **** off to your office, sit there being rich, and leave me the **** alone to do my job. Most of all, don't **** anything up. That's more than a fair trade on their end.

bongsaway · Jun 4, 2024

NatMorton said:
Median pay of the S&P 500, yes. Those are huge, complex companies and it makes sense that's where the most highly paid CEOs would be. Boards and investors have no reason to pay a CEO more than he or she is worth, so it's reasonable to see $16m as the market rate. You may not like that, but try running your $50b global enterprise for less.

From memory, the median CEO compensation for public companies is something like $700k/yr. Though that makes for a far less interesting headline.

Napoleon · Jun 4, 2024

Helix said:
I think of upper management as a wage tax. They get a good chunk of my salary, and there's nothing I can do about it. Given this, I want the same thing from them : nothing. No bold moves, no inconvenient initiatives, no faux appearances. Nothing. I don't even want to know their names. Just **** off to your office, sit there being rich, and leave me the **** alone to do my job. Most of all, don't **** anything up. That's more than a fair trade on their end.

On the other hand, that level of trust in the peons hast to be earned because they’re accountable for your **** ups.

bongsaway · Jun 4, 2024

NatMorton said:
Median pay of the S&P 500, yes. Those are huge, complex companies and it makes sense that's where the most highly paid CEOs would be. Boards and investors have no reason to pay a CEO more than he or she is worth, so it's reasonable to see $16m as the market rate. You may not like that, but try running your $50b global enterprise for less.

From memory, the median CEO compensation for public companies is something like $700k/yr. Though that makes for a far less interesting headline.

Those board members, other ceo's from other companies and they vote on each other's pay raises. Do you think one man or woman is running all aspects of a fifty billion dollar global enterprise? When these people get caught cheating they all say the same thing, I didn't know what was going on...in the company that they head but you think they are worth every penny.

bongsaway · Jun 4, 2024

Napoleon said:
On the other hand, that level of trust in the peons hast to be earned because they’re accountable for your **** ups.

Here's the thing, all big corporations want to blame the workers for piss poor management, it's really just that simple. One person can earn fifty million but workers have to work two hundred years for the same amount of money, insane.

Helix · Jun 4, 2024

Napoleon said:
On the other hand, that level of trust in the peons hast to be earned because they’re accountable for your **** ups.

I earned their trust. I put my ass on the line. Now they can sit in their private offices and leave me alone.

ttwtt78640 · Jun 4, 2024

Napoleon said:
On the other hand, that level of trust in the peons hast to be earned because they’re accountable for your **** ups.

That’s a rather odd assertion since management has the power to replace or demote an employee, but the employee has little power to hold management accountable.

Loulit01 · Jun 4, 2024

In the 50s the rate for CEOs was 40 to 50 times as much.

Loulit01 · Jun 4, 2024

NatMorton said:
Median pay of the S&P 500, yes. Those are huge, complex companies and it makes sense that's where the most highly paid CEOs would be. Boards and investors have no reason to pay a CEO more than he or she is worth, so it's reasonable to see $16m as the market rate. You may not like that, but try running your $50b global enterprise for less.

From memory, the median CEO compensation for public companies is something like $700k/yr. Though that makes for a far less interesting headline.

Absolute nonsense.

CaughtInThe · Jun 4, 2024

NatMorton · Jun 4, 2024

Helix said:
I think of upper management as a wage tax. They get a good chunk of my salary, and there's nothing I can do about it. Given this, I want the same thing from them : nothing. No bold moves, no inconvenient initiatives, no faux appearances. Nothing. I don't even want to know their names. Just **** off to your office, sit there being rich, and leave me the **** alone to do my job. Most of all, don't **** anything up. That's more than a fair trade on their end.

Somebody has authority issues.

NatMorton · Jun 4, 2024

bongsaway said:
Those board members, other ceo's from other companies and they vote on each other's pay raises. Do you think one man or woman is running all aspects of a fifty billion dollar global enterprise? When these people get caught cheating they all say the same thing, I didn't know what was going on...in the company that they head but you think they are worth every penny.

What point are you trying to make?

NatMorton · Jun 4, 2024

Loulit01 said:
Absolute nonsense.

https://www.ziprecruiter.com/Salaries/Ceo-Salary

dmpi · Jun 4, 2024

Don't whine about CEO pay rather figure out how to become one.

CEOs made nearly 200 times what their workers got paid last year

Loulit01

RESIST