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CEOs Salary Up nearly 200 times what workers were paid last year – 2023

Summary:
It appears upper management is running away with most of the compensation. Adding to this is the lowered taxes resulting from the 2017 Tax Cuts and Jobs Act which was passed using Reconciliation. The TCJA is due to reverse in 2025. I am sure President Biden will reverse it for the upper 20% at least. ~~~~~~~ NEW YORK (AP) — Compensation packages for S&P CEOs running companies jumped nearly 13% last year. This easily surpasses the gains for workers at a time inflation was putting considerable pressure on Americans’ budgets. A median CEO pay package in 2024 rose to .3 million. This is up from12.6%, according to data analyzed for The Associated Press by Equilar. Meanwhile, wages and benefits netted by private-sector workers rose 4.1% through

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It appears upper management is running away with most of the compensation. Adding to this is the lowered taxes resulting from the 2017 Tax Cuts and Jobs Act which was passed using Reconciliation. The TCJA is due to reverse in 2025. I am sure President Biden will reverse it for the upper 20% at least.

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NEW YORK (AP) — Compensation packages for S&P CEOs running companies jumped nearly 13% last year. This easily surpasses the gains for workers at a time inflation was putting considerable pressure on Americans’ budgets.

A median CEO pay package in 2024 rose to $16.3 million. This is up from12.6%, 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 of the companies in this year’s pay survey, it would take a worker at the middle of the company’s pay scale almost 200 years to make what their CEO did.

CEOs got rewarded as the economy showed remarkable resilience, underpinning strong profits and  boosting stock prices. After navigating the pandemic, companies faced challenges from persistent inflation and higher interest rates. About two dozen CEOs in the AP’s annual survey received a pay bump of 50% or more to compensate for inflation.

API has a great interactive chart which can be used to find a CEO’s salary. For example, American Express’s Stephen J. Squeri has a salary of $35.6 million or approximately 677 times the median employee at American Express. The chart can be found here: “CEOs made nearly 200 times what their workers got paid last year,” AP News.

The Global Economy Project’s Sarah Anderson at the progressive Institute for Policy Studies 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.

To me her assumption may be accurate if the average or the median salary employee has time to think about such issues. I suspect they are too busy trying to hang on to a job rather than think about AE’s Stephen’s salary.

Most of an employee’s focus is on inflation, which they are feeling, and more so the pain of it since the year wage increase has not kept up with the prices of fuel, food, clothing, etc. The pain is more realistic when you are deciding whether to get bread, peanut butter, and milk because you can not afford luncheon meat. Or are buying fattier hamburger meat than the 90 percent lean hamburger. It breaks down to those types of decisions.

At the top of the heap for CEO salary is Hock Tan, Broadcom Inc.’s CEO whose pay package valued at about $162 million. Tan’s stock awards were valued at $160.5 million on Oct. 31, 2022, for the company’s 2023 fiscal year.

Meanwhile back in the trenches . . .

“CEOs made nearly 200 times what their workers got paid last year,” AP News, Mae Anderson, Paul Harloff, and Barbara Ortuta.

“CEO Compensation Skyrockets While Workers’ Pay Barely Keeps Up,” capital & main, Mark Kreidler

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