CEOs made a median $20 million last year—254 times more than the average worker
As top executives took more pandemic pay cut than they earned in earnings, the CEO-to-worker gap continues to widen.
According to the report, CEOs earned 254 times the average worker’s salary in 2021. This is an increase of 7% over the previous year. the Equilar 100This provides an opportunity to see the CEO salaries of companies with the highest revenue and who filed proxy statements for 2021 by March 31.
The median compensation for CEOs rose 31% to $20 million in 2021 due to large jumps in stock bonuses and cash bonus based on company performance. Wages are part of the CEO’s compensation. Long-term incentives, stocks options and lucrative bonuses all make up the bulk. comprise around 85%Lawrence Mishel is an eminent fellow of the Economic Policy Institute.
If you compare, CEO salaries decreased just 1.6% from 2019 to 2020 because of pandemic cuts. They went down from $15.7million to $15.5million.
Equilar 100 businesses’ median employee compensation rose by roughly 4 percent from $68,935 in 2020, to $71,869 2021. Equilar explains that the increase in worker compensation is due partly to increased demand from consumers and tighter labor supply.
According to Sarah Anderson, a progressive think tank executive compensation specialist, the gap is widening. This shows how corporate profits continue to be the best while the “workers” who are often at the frontlines in crisis have not been reaping their rewards. Institute for Policy StudiesThe story was told CNBC.
She said that 2021 was a time when they let loose and focused their attention on making sure executives were happy, not on worrying about the workers. It’s going to hurt the bottom line in the long-term, as well as the short term.
For a variety of reasons, average worker wages are not increasing as quickly as CEO salaries. Mishel saysHigh unemployment, globalization and the loss of unions.
According to data from the U.S. Department of Labor, worker pay rose by approximately 5% to $31.58 per hour in the past year. However, wage growth is not evident. slowing down while everyday costs continue to increase — the consumer price index rose to 8.5% in March. In the meantime, it will end in 2021. Companies stated that they would set aside funds 3.9% of their payroll budgetsA November Conference Board survey that included more than 10,000 employees found that there were no raises.
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