Here's Why Top CEOs Make 100x More Than Their Workers

In 2020, CEOs of the top 350 firms in the US made $24.2 million, on average.

The CEO-to-worker pay gap has expanded exponentially over the past several decades. The Economic Policy Institute estimates that CEO compensation has grown 1,322% since 1978, while typical worker compensation has risen 18%.

The Institute for Policy Studies estimates that 80% of S&P 500 companies pay their CEO over 100 times more than they pay their median worker. That means it would take 100 years for the average employee at one of these companies to earn what their CEO makes in a year. And yes, that is physically impossible

This kind of inequality is creating anxiety for families across the country and across the political spectrum. According to Pew, a majority of Americans think future generations will be financially worse off.

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Here's Why Top CEOs Make 100x More Than Their Workers

[dunky]

Fun fact the modern workforce is now the most educated, most productive and least compensated while companies make record profits

[ShadowWalker]

If you get 300x more money than your best paid employee, this suggests you do the work of 300 of your best paid employees. I really want a CEO show me how exactly they do this ...

[alecjo]

In 2008, I was working as an assistant front desk manager for a big large company. The HR manager came and told me I had to take a pay cut cause revenue was way down or I can be laid off and get unemployment. I stayed, took a 20% pay cut (over $200) and worked 10 more hours a week. That same year, the hotel got the coveted five stars and four diamond rating, the GM of the hotel got over a million bonus and a big raise.

[joshuagharis]

Some of these people make 300+ k a week, a freaking week, and can't pay workers a living wage

[anniesshenanigans]

this must change.. Corporations have become mini 'empires' where the People at the top get all the money and glory for the work that the ones at the bottom are actually doing for almost nothing. We don't remember the people that built the Pyramids, only the 'Kings' .

[johnclontz]

The issue is that compensating executives with stock options and stock-related benefits causes many executives to have a short-term focus on the stock price. I. E. cutting salaries, keeping wages low and other things are the result. It helps stock value in the short-run (and therefore their compensation) but typically doesn't promote wise long-term decisions.

[pine]

They really need so set a law that stops one employee from making more than the other employees. Especially when those in management and higher don't do any real work

[kenvanlit]

These days, CEOs manage with a team of skilled and mostly highly paid executives. They also work with highly paid boards of directors. It doesn't make sense that they would earn significantly more than management below them. Would you pay astronomical dollars to someone who has to have their hand held? To someone who manages a company that doesn't do anything spectacular? A company that has a captured market for years? A company that has static growth?

[Nchinnam]

easy way to make the pay gap. quit your job and become a CEO of a startup. if everyone is a CEO then no one is under paid lol.

[stephen-finance]

Well, this will be interesting.
*Grabs popcorn and gets ready to watch the comment section take off

[stephen-finance]

Switching jobs is the only real way to get any sort of substantial raise. Although it still isn't a sure thing until you find the better job and then get it.

[rmcleod]

I compared my salary to my CEO’s salary. Let me say that I made a pretty good salary. I determined that the CEO earned my annual salary in the first 2 1/2 days of the year.

[justina]

So the CNBC make it reporter makes around $85, 409.25

[tasneemahmed]

While watching this entire thing I kept missing the part where they mention the point of this video. What is the message? Are CEOs bad? Should we all become CEOs? Is there anything the average joe can do to in any way fight these numbers?

[dannyhantx]

All I know about top paid CEOs is that they do lines, hookers and vacation on their personal yachts and they include those times spent as part of their working day.

[SalvusGratiumFidem]

She makes 85k a year. That's still pretty dang good 😂

[petecheng]

don't care when CEO makes billions, but come on, pay your employees livable wage at the least.

[emilkrawczyk]

Who else immediately paused the video to divide 24 million by 281

[israeliana]

They should interview that CEO that raised the minimum wage to $70k. Sqwak Alley? The company was performing better and he has cut turnover in half. People have more freedom. And he is still wealthy.

[biscaynesupercars]

People are complaining about employee wages and this is just giving me more reason to start your own business. Even if its something small, make yourself your own ceo