R Tyler Croy 🦀*CEOs earn 1000% more over the last 40 years*
Economists: this is fine.
*employee wages grow for the first time in 40 years*
Economists: THE LABOR MARKET IS TOO HOT AND IS DRIVING INFLATION.
this is fine
CEO pay has skyrocketed 1,322% since 1978: CEOs were paid 351 times as much as a typical worker in 2020
What this report finds: Corporate boards running America’s largest public firms are giving top executives outsize compensation packages that have grown much faster than the stock market and the pay of typical workers, college graduates, and even the top 0.1%. In 2020, a CEO at one of the top 350 firms in the U.S. was paid $24.2 million on average (using a “realized” measure of CEO pay that counts stock awards when vested and stock options when cashed in rather than when granted). This 18.9% increase from 2019 occurred because of rapid growth in vested stock awards and exercised stock options. Using a different “granted” measure of CEO pay, average top CEO compensation was $13.9 million in 2020, slightly below its level in 2019. In 2020, the ratio of CEO-to-typical-worker compensation was 351-to-1 under the realized measure of CEO pay; that is up from 307-to-1 in 2019 and a big increase from 21-to-1 in 1965 and 61-to-1 in 1989. CEOs are even making a lot more than other very high earners (wage earners in the top 0.1%)—more than six times as much. From 1978 to 2020, CEO pay based on realized compensation grew by 1,322%, far outstripping S&P stock market growth (817%) and top 0.1% earnings growth (which was 341% between 1978 and 2019, the latest data available). In contrast, compensation of the typical worker grew by just 18.0% from 1978 to 2020.
AlicePaulI don’t understand economic beyond my own personal finances. Like not at all. And, I’m just not too interested.
But I do understand and care about messaging and this one stinks badly.
Raymond@rtyler A 90% windfall tax will bring down inflation fast.
tom4okstate@rtyler why do the policy prescriptions always focus on the velocity of money? Never the supply. Raise taxes. Reduce the supply. Stop raising interest rates and screwing over people at the lowest end.
dibi58economics is another religion ...
martin@rtyler
Good point. Thank you for the information🙂
But why is knowone talking also about the shareholders in this context?
Good point. Thank you for the information🙂
But why is knowone talking also about the shareholders in this context?
msgbi
Mike MC@rtyler "i became an economist so i could explain to average folks why the rich are better and more deserving"
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D Pawson@rtyler I wonder what (which group) drives the Economist?
bassplayerME: Hey look everyone is employed and earning a decent wage.
The Fed: We can't have that. Hold my beer..
Excessive CEO pay is crazy but the market is forward looking. The Fed raises rates and sucks liquidity out of the system which adds pressure for companies to protect their bottom line and the biggest impact is headcount. Not saying high CEO pay isn't a problem just that monetary policy has the biggest impact on the economy.
Leslie Varney@rtyler and no one listens when it's explained that stock markets are not indications of economic growth, just of the top 3% of economic growth, usually accumulated as economic storing, or in stagnation
MickeyMaousse
dawnfry@rtyler
Tie CEO pay to a percentage based on the lowest paid contracted employee, *including their benefits,* and suddenly paychecks will go up.
That and require companies to publish their pay scales, so they can stop lowballing women, minorities, and people in economically depressed areas. (Which will stay economically depressed until employers are forced to pay people in them at a higher rate instead of a lower one.)
Alastair Cooper@rtyler In a narrow sense they may well be right because overall employees spend more money than CEOs (there's far more of them) . In a wider sense this shows how catastrophically fucked up the system is that it's literally designed to optimally improverish the majority.