The gap between CEO pay and worker pay is widening again
Lucas Jackson/Reuters
- CEOs in the S&P 500 made almost 200 times what their average worker did in 2023.
- CEO compensation had been trending downward before a 12.6% increase in 2023.
- Broadcom CEO Hock Tan was the highest-paid CEO in 2023 at $161.8 million.
Good news for all you CEOs out there: You're likely making way more money than your average employee.
The median salary for CEOs in the S&P 500 — which tracks the performance of the top 500 companies on US stock exchanges — was almost 200 times the average worker in 2023, according to a new study from Equilar and The Associated Press.
Broadcom CEO Hock Tan was the highest-earning CEO in 2023. His compensation totaled $161.8 million, Equilar said. Tan is the only CEO in the study to receive a compensation package of nine figures.
Fair Isaac Corporation CEO William Lansing, the second-highest earner listed, made $66.3 million last year. Apple's Tim Cook came in third on the list, making $63.2 million. And Netflix's Ted Sarandos checked in at fifth with almost $50 million.
The average American worker at S&P 500 companies, meanwhile, earns an average of about $80,000, the study found. Mercifully, that is a 5.2% increase from 2022.
Eye-popping CEO pay packages have become a symbol of inequality in the United States and a target of ire for organized workers. The Hollywood writer's strike last year attacked Disney CEO Bob Iger for making more than 500 times the median salary of a Disney employee. Iger's pay package totaled $27 million, according to his 2022 contract.
CEO pay has skyrocketed over the past 40 years, Business Insider previously reported. An average CEO in 1978 made about 31 times what their average worker made. In 2020, the average CEO made 346 times what their average worker made.
That staggering gap had been narrowing in recent years. In 2022, CEO pay in the S&P 500 decreased by 9%, according to the AFL-CIO.
But in 2023, it ticked back up. Median total compensation for S&P CEOs totaled $16.3 million last year, a 12.6% increase from the previous year, Equilar says. Stock rewards comprised about 70% of their compensation, according to the report.