The median ratio was 140:1 – American CEOs earnings vs their rank-and-file workers
Reporter: Aviva Lev-Ari, PhD, RN
What American CEOs earn compared with their rank-and-file workers
Equilar’s survey, which offers one of the first glimpses into the official ratio disclosures rolling out thanks to the 2015 ruling, is still only one sample. Previous calculations for average CEO-to-worker pay ratio in the US have been as high as 372-to-one—and the country’s soaring executive pay growth, especially when compared to that of the rest of the world, has raised eyebrows in recent years. Hence, the SEC’s request for companies to report their CEO’s pay in relation to their workers’ pay. And even getting that (paywall) was a tough fight.
The median ratio was 140:1.
Keep in mind that medians are the middle numbers in a set, not the average. At the 25th percentile, the ratio was 72:1, and it was 246:1 at the 75th percentile—meaning there are even higher gaps than that. The average ratio of CEO to median worker pay, across those 356 companies, was 241:1.
Ratios swung widely depending on a number of factors, including company size, location, and employment sector. Below are the industries with the highest pay gaps between CEOs and rank-and-file workers:
| Industry | Earnings ratio of CEO to median worker |
|---|---|
| Retailing | 669:1 |
| Food, beverage, tobacco | 233:1 |
| Capital goods | 175:1 |
| Health care equipment and services | 175:1 |
| Materials | 141:1 |
| Insurance | 139:1 |
On the other hand, the smallest gaps:
| Industry | Earnings ratio of CEO to median worker |
|---|---|
| Technology hardware and equipment | 125:1 |
| Software and services | 115:1 |
| Banks | 95:1 |
| Utilities | 78:1 |
| Energy | 72:1 |
SOURCE
https://work.qz.com/1196106/how-much-do-ceos-make-140-times-what-their-median-employee-does/
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