CEO compensation is up, as are corporate profits, but worker compensation has not kept pace, especially given inflation, according to an AFL-CIO survey.
CEOs of S&P 500 companies earned an average of $18.3 million in total compensation last year, the survey saidie an increase of 18.2% against a 7.1% increase in inflation.
CEO compensation is approximately 324 times more than the median wage of workers at their companies, whose pay rose about 4.7% last year, the American Federation of Labor and the Congress of Industrial Organizations found.
The average pay for CEOs of S&P 500 companies included $1.19 million in salary and $9.93 million in restricted stock, according to the report.
Amazon.com (ticker: AMZN) had the highest pay gap between CEO and worker, approximately 6,474 to 1, according to the survey. The average Amazon worker made $32,855 last year, while CEO Andy Jassy won $212.7 million in total compensation. Amazon’s net income in 2021 was $33.4 billion, compared to $21.3 billion in 2020.
Jassy’s salary included a base salary of $175,000, in addition to more than $200 million in stock awards over the next decade.
An Amazon spokesperson Told MarketWatch, which previously reported on the survey, that stock awards are expected to make up a large portion of Jassy’s compensation in coming years. The average starting wage for Amazon workers is over $18 an hour, the spokesperson told MarketWatch.
The CEO of Expedia (EXPE) was the highest paid in the S&P 500 last year, with a total of $296.2 million. The median worker pays
was $102,270, according to the investigation. Expedia reported adjusted revenue of $257 million in 2021, up from a loss the previous year.
An Expedia spokesperson said MarketWatch CEO Peter Kern’s compensation includes long-term equity incentives that don’t begin vesting until at least 2024. The AFL-CIO, which represents 12, 5 million workers, noted that while some leaders have salary of blamed workers partly because of rising prices, workers’ real wages have fallen 2.4% last year after adjusting for inflation.