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by ranie93
2577 days ago
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"In terms of CEO compensation based on realized stock options, CEOs of major U.S. companies earned 20 times more than a typical worker in 1965; this ratio grew to 30-to-1 in 1978 and 59-to-1 by 1989, and then it surged in the 1990s, hitting 376-to-1 by the end of the 1990s recovery, in 2000. The fall in the stock market after 2000 reduced CEO stock-related pay (e.g., realized stock options) and caused CEO compensation to tumble in 2002, to 192 times typical worker pay, before beginning to rise again in 2003. CEO compensation recovered to a level of 347 times worker pay by 2007, almost back to its 2000 level. The financial crisis of 2008 and accompanying stock market decline reduced CEO compensation between 2007 and 2009, as discussed above, and the CEO-to-worker compensation ratio fell in tandem. By 2014, the stock market had recouped all of the value it had lost following the financial crisis and the CEO-to-worker compensation ratio in 2014 had recovered to 299-to-1. The fall in CEO compensation since 2014 has caused the CEO-to-worker pay ratio to fall to 271-to-1 in 2016. Though the CEO-to-worker compensation ratio remains below the peak values achieved earlier in the 2000s, it is far higher than what prevailed through the 1960s, 1970s, 1980s, and 1990s." [0]https://www.epi.org/publication/ceo-pay-remains-high-relativ... |
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