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The compensation for Chief Executive Officers saw a significant decline in 2023, even with a powerful stock market, according to a recent analysis. CEO pay remained extraordinarily high soaring—290 times bigger than that of the average worker—despite this reduction.
A study by the Economic Policy Institute revealed that in 2023, total compensation for chief executives of publicly traded companies dropped by nearly 20 percent. Experts are baffled by this unexpected trend, as executive salaries typically correlate along with stock market performance.
Key Insights from the Economic Policy Institute Report
From 1978 to 2023, top CEO compensation surged by 1,085%, in stark contrast to a 24% increase in approx worker pay. In the year 2023, CEOs earned 290 times extra than a typical worker, compared to just 21 times more in 1965. Additionally, in 2022, CEOs made almost 10 times the income of the top 0.1% of U.S. wage earners, displaying the extreme disparity in CEO pay increases.
Despite stable economic conditions, CEO pay experienced an unusual fall.
In conclusion, the EPI analysis suggests that CEOs are receiving high compensation due to their power over corporate boards, rather than their abilities or contributions to their companies. The increasing salaries of CEOs have contributed to increasing inequality in recent decades, as they have likely driven up the salary of other high earners, concentrating wealth at the top and leaving ordinary workers with fewer profits.