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200-TO-1: GAP BETWEEN CEOS AND WORKERS GREW EVEN WIDER IN 2023,
ANALYSIS FINDS  
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Edward Carver
June 3, 2024
Common Dreams [[link removed]]

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_ The finding from The Associated Press adds to the evidence of
growing inequality—and helps explain worker dissatisfaction with the
economy, as wages fail to rise alongside executive pay, an expert
said. _

Broadcom CEO Hock Tan announces the repatriation of his company's
headquarters to the United States from Singapore during a ceremony at
the White House in November, 2017. Tan earned $162 in 2023, the
highest compensation of any S&P 500 CEO. , Martin H. Simon/Getty
Images

 

The median compensation of chief executives at major U.S.-listed firms
increased by 12.6% to $16.3 million in 2023, far outpacing the growth
in worker wages and widening the CEO-to-worker pay gap to nearly
200-to-1, according to
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new reporting by the_ Associated Press_ on Monday.

The increase in CEO compensation came as private sector workers' pay
increased just 4.1% last year, according to the U.S. Department of
Labor. Among hundreds of surveyed firms for the _AP_ analysis, the
median gap between CEO pay and median employee pay was 196—up from
185 in 2022.

Experts said the analysis showed that the economic hardship that
Americans face and the dissatisfaction
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they feel with the economy is due to unnecessary wage stagnation, with
profits diverted upwards, and not just inflation.

"Most of the focus here is on inflation, which people are really
feeling, but they’re feeling the pain of inflation more because
they’re not seeing their wages go up enough," Sarah Anderson,
director of the Global Economy Project at the Institute for Policy
Studies (IPS), told the _AP_.

NEW: CEO pay at major U.S. companies jumped nearly 13%(!) last year
while workers are "feeling the pain of inflation more," says
@SarahDAnderson1
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they’re not seeing their wages go up enough."@Maetron
[[link removed]], @PHarloffAP
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@BarbaraOrtutay
[[link removed]] in @AP
[[link removed]]: [link removed]
— Institute for Policy Studies (@IPS_DC) June 3, 2024
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The _AP_ has conducted this analysis annually for the last 14 years,
working with business intelligence firm Equilar, which included in the
analysis
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the 341 S&P 500 firms that submitted a proxy statement between January
and April 2024. Their work comes on top of a raft of recent academic
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nonprofit research on income inequality, including the CEO-to-worker
pay ratio.

It's possible that Equilar in fact underestimated the pay gap. Some
researchers have found a higher ratio, including the Economic Policy
Institute
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found it to be 344-to-1
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year studied—compared to just 21-to-1 in 1965—using a standardized
methodology [[link removed]] to
determine median worker pay, rather than letting a firm declare its
median salary. EPI found that CEO pay soared an astonishing 1,209.2%
from 1978 to 2022 while worker pay increased just 15.3% over the same
period.

In her work for IPS, Anderson has shown that the S&P 500 CEOs make
more in one day
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average American makes in a year.

The rise in CEO compensation in 2023 came primarily because of an
increase in stock awards, Equilar found. The S&P 500 rose more than
24% in 2023, after going down in 2022, leading to higher executive
compensation.

Hock Tan, the CEO of Broadcom Inc., a semiconductor manufacturer, led
the CEO list with pay of about $162 million last year. Tim Cook of
Apple Inc. was third at $63.2 million.

Does anyone really think Hock works over a thousand times harder than
his engineers? pic.twitter.com/m6ROQesfQN [[link removed]]
— Inequality.org (@inequalityorg) May 13, 2024
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Sen. Bernie Sanders [[link removed]]
(I-Vt.) has led federal legislative efforts to address the
CEO-to-worker pay gap. He reintroduced the Tax Excessive CEO Pay Act
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to the U.S. Senate in January, which would impose a tax penalty on
companies with ratios higher than 50 to 1. While popular with workers
and progressive economists, critics have dismissed the proposal
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by calling it a "messaging bill with little chance of becoming law."

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* CEO to Worker Pay Gap; AP Analysis on Wage Gap;
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