The pay gap between CEOs and the average worker continues to widen, with the median CEO in the S&P 500 earning over $16 million last year, a 13% increase from the previous year. In contrast, worker pay saw a more modest 5% increase to just over $81,000. This disparity is further highlighted by the fact that while employees received an average pay hike of $4,300, CEOs saw an increase of $1.5 million.
The significant rise in CEO compensation is largely attributed to stock prices, as stock awards for the median CEO surged by 11% to $9.4 million. This trend is exemplified by the highest-paid CEO, who received over $161 million in total compensation, primarily from stock awards due to the company's soaring share price.
These staggering figures underscore the challenges faced by many workers grappling with the rising cost of living. Expenses such as daycare, rent, car insurance, and home insurance have all seen substantial increases in recent years, with the average American now spending over $1,000 more on the same basket of goods and services compared to three years ago.
While CEOs are reaping the benefits of a booming stock market, workers are struggling to keep up with escalating costs, as most of their pay raises are being absorbed by these higher expenses. The widening pay gap between CEOs and workers, with some CEOs earning over 500 times more than their median employees, raises questions about income inequality and the distribution of wealth within corporations.
