How much money CEOs of big corporations make
It pays to be a boss. Even in 1965, CEOs of the largest US companies drew an average of $ 924,000 a year (in 2018 dollars), and since then their compensation has skyrocketed.
According to a new report from the Left-wing Economic Policy Institute (EPI), which found that CEO salaries peaked in 2000 at around $ 21 million a year (in 2018 dollars). In 2018, CEOs of larger companies earned an average of $ 17.2 million in compensation, hundreds of times more than the typical average worker's annual salary.
"The CEO-employee compensation ratio was 278 to 1[ads1] in 2018 – far greater than the 20-to-1 ratio in 1965 and 4.8 times greater than the 58-to-1 ratio in 1989," states that in the report. .
EPI looked at the 350 largest US companies and measured compensation both with realized stock options and the value of options granted. Both measures also include salaries, bonuses, limited share premiums and long-term payouts.
No matter how it is measured, CEO salaries continue to be monumental compared to typical employees. "CEOs even earn much more – about five times as much – as other revenue in the top 0.1%," the report adds.
CEOs even earn a lot more – about five times as much – as other revenue in the top 0.1%.
Economic Policy Institute
How fast have salaries grown for those at the top? Here is the average annual CEO's compensation for different years from 1965. The CEO's salary is represented in 2018 dollars.
1965
Annual compensation for CEO based on realized options: $ 924,000
Annual compensation for CEO based on granted options: $ 705,000
1973
Annual annual compensation based on realized options: $ 1.2 million
Annual annual compensation based on options granted: $ 920,000
1978
Annual compensation based on realized options options: $ 1.7 million
Annual annual compensation based on options granted: $ 1.3 million
1989
Annual annual compensation for CEO based on realized options: $ 3.1 million
Annual compensation for CEO based on options granted: $ 2.4 million
1995
Annual annual cost real-time compensation based on realized options: $ 6 million
Annual annual compensation based on granted options: $ 6.6 million
2000
Annual annual compensation based on realized options: $ 21.5 million
Annual compensation for CEO based on options granted: $ 21.5 million
2007
Annual compensation for CEO based on realized options: $ 20 million
Annual annual compensation based on options granted: $ 14 million
2009
Annual annual compensation on realized options: $ 11.3 million
CEO annual compensation based on options granted: $ 10.8 million
2016
CEO annual compensation based on realized options: $ 16 million [19659011] CEO annual compensation n based on options granted: $ 12.8 million
2017
Annual annual compensation based on realized options: $ 17.3 million
Annual annual compensation based on options granted : $ 12.7 million [1 9659009] 2018
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