Data from the latest study by the Economic Policy Institute (EPI) showed that in 2019, CEOs made 320 times more than the average worker, supporting evidence showing accelerating payment among corporate executives beginning decades ago.
Concerning the report, research assistant and co-author Jori Kandra said, “This huge growth in CEO pay is not a reflection of the market for talent. We know this because CEO compensation has grown more than three times faster than the growth of earnings for the top 0.1% of earners, which was 337% over the same period.”
She added, “This means that CEO pay can be curbed to reduce the growing gap between the highest earners and everyone else with little, if any, impact on the output of the economy or firm performance.”
In the last four decades, CEOs have seen a 1,167% rise in earnings — a stark contrast to the 13.7% growth in worker compensation. In 1965, the wage gap between CEOs and their employees was 21-to-1.