S&P 500 CEOs Reportedly Made 373 Times Average Worker Pay in 2014
According to a new report that was released today, the gap between CEO pay and the pay of the average American worker continues to widen.
The report, which was released by the AFL-CIO (The American Federation of Labor and Congress of Industrial Organizations), said that an examination of the pay packages of the CEOs of all of the S+P 500 companies revealed that these CEOs made, on average, 373 times more than the average American worker. This is up from 331 times in 2013.
According to the report from the AFL-CIO, the average pay package for a S+P 500 CEO last year was $22.6 million, up from $20.7 million in the previous year. This compares to an income of $51,939 for the average US family, with the average worker making approximately $25/hour.
Given the strong performance of the stock market over the past 5-6 years, it shouldn't surprise anybody to learn that most CEOs are doing very, very well for themselves. The typical CEO compensation package will have a mix of cash, stock and stock options and "pension and other perks" (the report has the breakdown as 37% cash, 54% stock and stock options and 9% "pension and perks"), so a strong increase in equity values will obviously have a strong impact on the financial situation of the average S+P 500 CEO.
While many people continue to grumble about the growing disparity between CEO pay and the pay of the average American worker, there is likely not going to be very much done about it anytime soon.
Source: Finance.Yahoo.com - Income Gap: CEOs Make 373 Times Average Worker Pay
Filed under: General Knowledge