American CEOs now make 320 times what their workers earn

CEOs made 320 times more than what their typical worker earned last year, according to a new report from the, part of a decades-long trend of rapidly growing compensation for corporate America’s top execs.

Total realized compensation for chief executives has grown by 1,167% in the last 40 years to $21.3 million in 2019, according to the Economic Policy Institute. The stock market’s growth in recent years is behind the growing disconnect between CEO and worker wages. Unlike the rank-and-file worker whose pay is correlated to output and performance, CEO pay is largely tied to the stock performance of their company that has been buoyed by the market’s upward climb since the Great Recession ended.A board of directors determines the pay for a company’s chief executive.

That’s because three-fourths of salaries of the top brass are composed of vested stock awards and exercise in stock options with a paltry 6.2% of the compensation coming from salary. In other words, CEOs still earn seven figures — despite a pay cut — because they’re not abandoning their stock options.Given the stock market’s recent activity of reaching pre-pandemic highs, CEO compensation “will probably rise further in 2020,” Mishel said.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Former McDonald's CEO asks court to dismiss case against himMcDonald’s former CEO is asking a court to dismiss the company’s lawsuit against him, calling it “meritless and misleading.” Pretty much like their entire menu ...... merit less and misleading They’re blaming him for the McFlurry machines That's what a trial is for. To determine if this is so.
Source: ABC - 🏆 471. / 51 Read more »

Boeing to offer second layoff plan, CEO Calhoun sees smaller market aheadBoeing Co said on Monday it would offer employees a voluntary layoff package with pay and benefits for the second time this year, as the planemaker battles a coronavirus-induced slowdown in global air travel. With Boeing representing approx. 1% of U.S. GDP, this will have a ripple effect. CEO and upper management should quit and take a pay cut.. More families about to enter the no longer augmented, not enough to pay the bills, unemployment insurance benefits line.
Source: Reuters - 🏆 2. / 97 Read more »

GrowGeneration CEO says cannabis 'business is booming' after company ups guidance'We're in such an early stage of a multi-billion dollar industry. GrowGeneration is just getting started,' GrowGeneration CEO Darren Lampert said.
Source: CNBC - 🏆 12. / 72 Read more »

David Perdue was the CEO of Dollar General before entering politics - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »