Executive, Finance - US CEOs Overpaid
American CEOs are egregiously overpaid to the detriment of shareholders and workers, even if they're not doing a very good job leading their corporations.
The average ratio of CEO to worker pay in the US is 300:1, leading the world in excessive executive compensation. The median pay for S&P 500 CEOs is now well over US$10 Million. Even the bottom 10 percent of companies with the worst one-year shareholder returns had CEOs with median pay packages of $12.6 Million.
In the four decades from 1978 and 2018, inflation-adjusted CEO compensation based on realized stock options has increased 940 percent. That increase in CEO pay was 25-to-33 percent higher than the companies' stock market growth. And it was ten times greater than the growth in the typical workers' annual pay in the same period, which went up onlu 11.9 percent.
This situation distorts incentives, exacerbates income inequality, and leads consumers and employees to think the game is rigged against them.
The data was compiled and analyzed by the group As You Sow, which acts as an advocate for shareholders by tracking CEO salaries and compensation and those of other top executives. As You Sow says it does this to promote a "safe, just, and sustainable world in which protecting the environment and human rights is central to corporate decision making".