In May 2012, researchers from the Economic Policy Institute (EPI) took a stab at calculating the overall CEO-to-worker compensation ratio with the information already available. Here’s what they found: In 2011, the average CEO’s compensation was equal to 209.4 times that of the average worker, at least when stock options were included in compensation. That was up substantially from the 18.3-to-1 ratio found in 1965, but barely half of the 411.3-to-1 found in 2000. Nonetheless, the institute found that CEO pay had grown 725% between 1978 and 2011, while worker compensation had only increased by 5.7%. That stratospheric growth in CEO pay has correlated with an overall explosion in income inequality; whereas the top 10% of income earners in the United States controlled only about one-third of all income throughout the 1970s, they now lay claim to over half, according to a report from economist Emmanuel Saez.
Posted on: Thu, 19 Sep 2013 21:41:53 +0000
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