CEO and “typical” worker compensation in the organization
Longer-term trends in CEO compensation:
- From 1978 to 2013, CEO compensation, inflation adjusted, increased 937 percent, a rise more than double stock market growth and substantially greater than the painfully slow 10.2 percent growth in a typical worker’s compensation over the same period.
- The CEO-to-worker compensation ratio was 20-to-1 in 1965 and 29.9-to-1 in 1978, grew to 122.6-to-1 in 1995, peaked at 383.4-to-1 in 2000, and was 295.9-to-1 in 2013, far higher than it was in the 1960s, 1970s, 1980s, or 1990s.
- If Facebook, which we exclude from our data due to its outlier high compensation numbers, were included in the sample, average CEO pay was $24.8 million in 2013, and the CEO-to-worker compensation ratio was 510.7-to-1.
Source: Mishel, Lawrence and Davis, Alyssa, “CEO Pay Continues To Rise As Typical Workers Are Paid Less,” EPI (Economic Policy Institute...