Wednesday, June 4, 2014

Median CEO Pay Crossed $10 Million in 2013

In this era of income inequality, many are working hard but not getting ahead. Many are among the working poor. Then there are those who can't relate at all to these struggling workers. Consider the fact that the median CEO pay in 2013 crossed $10 million for the first time. CEOs typically make 257 times the average worker's wage. Is it any wonder that income inequality is the highest since 1928–and that the U.S. has the worst income inequality in the developed world? The Associated Press has the details:

They're the $10 million men and women.

Propelled by a soaring stock market, the median pay package for a CEO rose above eight figures for the first time last year. The head of a Standard & Poor's 500 company earned a record $10.5 million, an increase of 8.8 percent from $9.6 million in 2012, according to an Associated Press/Equilar pay study.

Last year was the fourth straight that CEO compensation rose following a decline during the Great Recession. The median CEO pay package climbed more than 50 percent over that stretch. A chief executive now makes about 257 times the average worker's salary, up sharply from 181 times in 2009.

...The 8.8 percent increase in total pay that CEOs got last year dwarfed the average raise U.S. workers received. The Bureau of Labor Statistics said average weekly wages for U.S. workers rose 1.3 percent in 2013. At that rate an employee would have to work 257 years to make what a typical S&P 500 CEO makes in a year.

"There's this unbalanced approach, where there's all this energy put into how to reward executives, but little energy being put into ensuring the rest of the workforce is engaged, productive and paid appropriately," says Richard Clayton, research director at Change to Win Investment Group, which works with labor union-affiliated pension funds.

Photo: Shutterstock

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