CEO Pay Soars Amid Economic Resilience and Inflation Challenges

The median pay package for CEOs of S&P 500 companies rose nearly 13% last year, reaching USD16.3 million. Despite workers' wages rising by 4.1%, the pay gap between top executives and employees has widened significantly. Notable CEOs like Hock Tan of Broadcom received substantial stock awards, reflecting the trend of performance-linked compensation.

PTI | Newyork | Updated: 03-06-2024 17:21 IST | Created: 03-06-2024 17:21 IST
CEO Pay Soars Amid Economic Resilience and Inflation Challenges
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The median pay package for chief executives of S&P 500 companies surged by nearly 13% last year, outpacing worker wage gains amid inflation pressures on American households. Data analyzed by Equilar for The Associated Press revealed that the median CEO pay rose to USD16.3 million, a 12.6% increase, while private-sector worker wages and benefits grew by 4.1% in 2023.

This widening pay gap is evident, with the median worker requiring almost 200 years to match their CEO's earnings at half the surveyed companies. Market resilience and rising stock prices rewarded CEOs, with some receiving pay hikes of 50% or more.

In a post-pandemic market, boards aim to retain perceived effective leaders, boosting CEO compensation tied to stock awards. For instance, Broadcom's CEO Hock Tan topped the list with a USD162 million package, reflecting the company's remarkable market value growth. However, the disparity in earnings between executives and workers amplifies economic dissatisfaction, underscored by stagnant worker wage growth compared to inflation.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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