Growing Inequality: Average CEO Now Makes 257 Times More Than You
While the economy and wages stagnate, CEO pay is rising faster than ever. According to a new Associated Press study, the average CEO now makes a record $10.5 million per year, up from $9.6 million just a year ago.
According to the report, the median pay for a chief executive of a public company is now 257 times higher than the median worker’s salary. In 2009, it was “only” 181 times greater.
Of course, $10.5 million is just the average. The country’s highest paid CEO is Nabors Industries’ Anthony Petrello, who earned $68.3 million last year from his job at the oilfield-services corporation.
The second highest paid CEO was CBS’ Les Moonves who earned a whopping $65.6 million last year.
Many media CEOs made the highest paid list, including Viacom’s Philippe Dauman ($37.2 million), Disney’s Robert Iger ($34.2 million), and Warner’s Jeffrey Bewkes ($32.5 million).
GMI Ratings Director of Research Gary Hewitt says “companies have been happy with their CEO’s performance and the stock market has provided a big boost. But we are still dealing with a situation where CEO compensation has spun out of control and CEOs are being paid extraordinary levels for their work.”
While CEO pay grew a massive 8.8 percent in a single year, the average wage for employees rose by a far-less-whopping 1.3 percent.
Change to Win Investment Group Research Director Richard Clayton says “there’s this unbalanced approach, where there’s all this energy put into how to reward executives, but little energy being put into ensuring the rest of the workforce is engaged, productive, and paid appropriately.”