Average CEO Pay of Top 350 US Companies is 25.2 Billion KRW... "320 Times That of Workers"

CEO vs Regular Worker Income Gap, 61:1 in 1989 → 320:1 in 2019
"CEO Compensation May Increase This Year Due to Stock Price Rise"

New York Stock Exchange (NYSE) [Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] An analysis revealed that the actual income received by CEOs of the top 350 companies in the United States last year averaged $21.3 million (approximately 25.17 billion KRW), which is 320 times that of non-managerial general workers.

On the 18th (local time), The Washington Post (WP) cited the annual report of the Economic Policy Institute (EPI), a progressive think tank in the U.S., announcing that the actual compensation these CEOs received last year, including stock options, rose 8.6% from the previous year to $14.5 million. WP reported, "As the income gap continues to widen, CEO incomes increased at the largest rate in seven years last year due to stock price gains."

EPI focused on the widening income gap between CEOs and general workers. In 1989, the income gap was 61 to 1, but it grew to 293 to 1 in 2018 and reached 320 to 1 last year. EPI pointed out that although many companies have implemented wage cuts and layoffs due to the COVID-19 pandemic, CEO incomes are likely to increase again this year.

EPI analyzed that the proportion of stock-based compensation such as stock options in CEOs' annual income is much larger than salaries and cash bonuses, and that the stock price increase could outweigh the CEO salary cuts caused by COVID-19. The compensation CEOs received surged 1,167% (adjusted for inflation) between 1978 and 2019, far exceeding the 337% increase in wages for the top 0.1% of wage earners (1978?2018). According to data from the Bureau of Labor Statistics (BLS) under the Department of Labor, the income of general workers increased by only 13.7% over the past 40 years.

EPI noted that while CEO incomes decreased during the last two recessions, this time it could be different, warning that companies should be mindful of what happens when only CEOs' incomes increase during the COVID-19 situation.

This content was produced with the assistance of AI translation services.