Average CEO pay jumps 535% in 1990's

11/02/00

Growth in executive salaries over the last decade has far exceeded any growth in average worker salaries for the same time period. The gap in compensation between the average U.S. worker and his/her CEO becomes wider and wider each year. Even corporate profits themselves have grown at a much slower rate then executive compensation.

From a recent study:
"A new study reveals growing pay gaps between workers and CEOs and between CEOs and government officials that are increasing inequality and undermining democracy. CEO pay jumped 535% in the 1990s, dwarfing the 297% rise in the S&P 500, 116% rise in corporate profits and 32% increase in average worker pay (not adjusted for inflation). The pay gap between CEOs and the President of the United States has grown from 2:1 to 62:1 since 1960, reports the Institute for Policy Studies and United for a Fair Economy in Executive Excess 2000."

"If average pay for production workers had grown at the same rate as it has for CEOs during this boom, instead of barely outpacing inflation, their 1999 annual earnings would have been $114,035 instead of $23,753. If the minimum wage had risen as fast as CEO pay, it would now be $24.13 an hour, instead of $5.15."

You can download the full study at:
http://www.ufenet.org/press/exec_excess_2000_pr.html