Can You Guess How Much CEOs Are Raking In?

What's Hot

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

How a Mexican Tariff Will Boost the Cost of 6 Common PurchasesFamily

This Free Software Brings Old Laptops Back to LifeMore

How to Protect Yourself From the ‘Can You Hear Me?’ Phone ScamFamily

Report: Walmart to Begin Selling CarsCars

Is Your TV Tracking You? Here’s How to Tell — and Prevent ItAround The House

Trump Scraps FHA Rate Cut — What Does It Mean for You?Borrow

Where to Sell Your Stuff for Top DollarAround The House

11 Staging Tips to Help You Get Top Dollar When Selling Your HomeAround The House

8 Tuition-Free U.S. CollegesCollege

10 Overlooked Expenses That Ruin Your BudgetFamily

4 Car Insurers That Might Raise Rates Even When the Accident Wasn’t Your FaultCars

How to Invest If Trump Kills the ‘Fiduciary Rule’Grow

20 Simple Hacks to Make Your Stuff Last LongerAround The House

12 Surprising Ways to Wreck Your Credit ScoreBorrow

CEOs at big companies in America are making a jaw-dropping 276 times more than you. Find out how much the average chief executive takes home.

Cha-ching! Chief executives in America’s largest companies are bringing home the bacon, and lots of it. A new report reveals top executives made an average of $15.5 million in compensation in 2015.

That’s a whopping 276 times the annual average pay of a typical American worker, says the Economic Policy Institute, the Washington, D.C.-based think tank that conducted the study. The disparity marks quite a change from 1965, when CEOs were paid about 20 times more than the average worker.

The EPI’s report is based on an analysis of several compensation factors tied to chief executives of the top 350 companies in the U.S. They include:

  • Salaries
  • Bonuses
  • Long-term incentive payouts
  • Restricted stock grants
  • The value of stock options exercised

Click here for more on the analysis methodology.

Although the CEO-to-worker compensation ratio dipped last year from the level in 2014 — when there was a 302-to-1 ratio — the EPI report attributes that drop to a “faltering stock market, and a corresponding decline in the potential value of stock options — not any structural changes in corporate governance or how CEO compensation is set.”

EPI President Lawrence Mishel, who co-authored the CEO pay report, says in a statement:

“The stock price of any given company is largely a reflection of the stock market overall, not its CEO’s performance. We see that in the way that average CEO pay tracked the stock market in 2015. CEO compensation will likely resume its upward trajectory when the stock market moves up again.”

After crunching the inflation-adjusted pay totals for chief executive pay from 1978 to 2015, the EPI says top-dog compensation has shot up a jaw-dropping 940.9 percent since 1978.

To put that dramatic increase in perspective, it was 73 percent faster than the stock market’s growth during the same period. Meanwhile, the typical American worker’s annual compensation from 1978 to 2015 rose just 10.3 percent, EPI noted.

“CEO pay has grown far faster than the pay of typical workers, college graduates, or even the top 0.1 percent,” says report co-author Jessica Schieder in a statement. “Skyrocketing CEO pay isn’t about the market for talent — it’s about what executives can get away with.”

Of course, not all chief executives in America are earning six figures or more. These CEOs earned $1 last year.

For more on top-dog pay, check out the “Companies With Big Gaps Between CEO and Worker Pay.”

What do you think of CEO pay in the U.S.? Sound off below or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: 6 Ways to Get Your Official FICO Score Free

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,818 more deals!