Median CEO Pay Hits a Record $10.5 Million

What's Hot

23 Upgrades Under $50 to Make Your House Look AwesomeAround The House

Trump Worth $10 Billion Less Than If He’d Simply Invested in Index FundsBusiness

Do This or Your iPhone Bill May SkyrocketSave

19 Moves That Will Help You Retire Early and in StyleFamily

11 Places in the World Where You Can Afford to Retire in StyleMore

What You Need to Know for 2017 Obamacare EnrollmentFamily

The 35 Two-Year Colleges That Produce the Highest EarnersCollege

5 DIY Ways to Make Your Car Smell GreatCars

8 Things Rich People Buy That Make Them Look DumbAround The House

50 Ways to Make a Fast $50 (or Lots More)Grow

32 of the Highest-Paid American SpeakersMake

Amazon Prime No Longer Pledges Free 2-Day Shipping on All ItemsMore

5 Reasons a Roth IRA Should Be Part of Your Retirement PlanGrow

More Caffeine Means Less Dementia for WomenFamily

7 Household Hacks That Save You CashAround The House

30 Awesome Things to Do in RetirementCollege

Beware These 10 Retail Sales Tricks That Get You to Spend MoreMore

CEO pay increased for the fourth consecutive year in 2013.

Forget about six- and seven-figure salaries. A median pay package for a chief executive in the U.S. hit a record $10.5 million in 2013, according to an Associated Press/Equilar pay study.

Median CEO pay has increased in each of the last four years.

While the banking industry experienced the biggest pay hike last year, health care tops all other industries for the highest median CEO pay for the fifth time in six years, said the AP.

The highest paid CEO in 2013 was oilfield executive Anthony Petrello of Nabors Industries, who pulled in a hefty $68.2 million salary. Click here for a list of the highest-paid CEOs in the U.S. last year.

While CEOs averaged an 8.8 percent raise in 2013, U.S. workers’ weekly wages increased just 1.3 percent in 2013, according to the Bureau of Labor Statistics. This equates to a chief executive earning 257 times the national average, which has skyrocketed from 181 times in 2009. The AP said:

“There’s this unbalanced approach, where there’s all this energy put into how to reward executives, but little energy being put into ensuring the rest of the workforce is engaged, productive and paid appropriately,” says Richard Clayton, research director at Change to Win Investment Group, which works with labor union-affiliated pension funds.

While many company boards of directors and investors claim that big pay packages are necessary to attract and retain top-caliber executives, it seems that executive pay has spun out of control. According to columnist David Lazarus with the Los Angeles Times:

The reality is that corporate boards, acting on the advice of professional salary consultants, routinely approve pay packages based on the relative perks enjoyed by a CEO’s “peers.”

Every time a fatter package is approved, therefore, the bar is raised for all other CEOs. It’s a never-ending game of more-more-more.

Executive pay practices may be getting a tiny bit better, at least at some companies. The AP said three-quarters of shareholders at Chipotle Mexican Grill this month voted against a pay package for co-CEOs Montgomery Moran and Steve Ells.

Are you surprised that the median CEO pay package is $10.5 million? Share your comments 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: 19 Cheap or Free Ways to Cut Your Winter Energy Bills

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 1,711 more deals!