Since 1978, CEO pay has grown 1,007.5% by one measure and a mere 940.3% by another measure, the Economic Policy Institute reports. Average workers? Their pay has gone up just 11.9%. That’s not all, either. The increase in CEO pay has dramatically outstripped the increase for other very high earners, which is positively modest at 339.2%.
The numbers start to seem a little more manageable if you drill down to more recent years, but the inequality is still striking:
CEO compensation has grown 52.6% in the recovery since 2009 using the options-exercised measure and 29.4% using the options-granted measure. In contrast, the typical workers in these large firms saw their annual compensation grow by just 5.3% over the recovery and actually fall by 0.2% between 2017 and 2018.
EPI also finds in the data an indication that no, CEOs aren’t magical unicorns who are worth all that money on their own unique merit: “CEOs of large firms earned 5.4 times that of the average top 0.1% earner in 2017, up from 4.4 times in 2007. This is yet another indicator that CEO pay is more likely based on CEOs’ power to set their own pay, not on a market for talent.”
This blog was originally published at Daily Kos on August 20, 2019. Reprinted with permission.