CEO pay is up 940% since 1978

In EPI’s latest analysis of CEO pay, Distinguished Fellow Larry Mishel and Research Assistant Julia Wolfe find that CEO pay has grown 940% since 1978, while typical workers’ pay grew only 12% during that time. According to the analysis, CEOs were paid an average of $17.2 million in 2018, 278 times what typical workers were paid. For comparison, the CEO-to-worker pay ratio was 20-to-1 in 1965 and 58-to-1 in 1989. Extraordinarily high CEO pay is not a reflection of increased productivity or high-demand skills but of CEOs’ power to set their own pay—and is a major contributor to rising inequality. Read the report »
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CEO pay is up 940% since 1978

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From the EPI blog


EPI in the news

CBS MoneyWatch covered EPI’s latest analysis of CEO pay, speaking with Larry Mishel about the relationship between CEO pay and performance. “When every industry stock goes up, [CEOs’] stock goes up,” said Mishel, “and they’re rewarded as though they hit a triple. That’s not for performance as they are sitting in the bleachers.” | CEOs Rake in 940% More Than 40 Years Ago, While Average Workers Earn 12% More
Mishel also told Yahoo Finance that the “[destruction of the] collective bargaining system in this country” is the primary cause of workers’ inability to get wage increases, resulting in the widening income gap. | CEO Compensation Is Up 1,000% from What It Used to Be. Worker Pay? Not So Much.
Joining a union is the best way to address issues in the workplace, according to an op-ed by Kayla Blado, EPI director of media relations and president of the Nonprofit Professional Employees Union. Said Blado, “Being in a union means that you and your coworkers work together to fix the problems at your workplace, and then negotiate for solutions with management. Whether this means collectively bargaining for raises, vacation time, better healthcare or more clear-cut job duties, there is an undeniable strength in a union.” | The Answer to Burn Out at Work Isn’t “Self-Care”—It’s Unionizing
Presidential candidate Mayor Pete Buttigieg cited an EPI report in his proposal to put an end to so-called right-to-work laws and return bargaining power to workers. | Democratic Presidential Hopefuls Vow to End Right-to-Work Laws
Valerie Wilson, EPI’s director of the Program on Race, Ethnicity, and the Economy (PREE), joined the hosts of the Make Me Smart podcast to discuss the history and politics of racial inequality and the latest research on it. | The Economy Still Isn’t Working for People of Color
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The cost of excessive CEO pay
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