A report by the AFL-CIO, the largest union federation in the U.S., found that the average CEO at a large company in the U.S. made 264 times the amount earned by the typical employee, which was actually a bit lower than the 287 times recorded in 2018. But with the pandemic, it’s expected to jump.
Last year’s number was based on the average CEO total compensation of $14.8 million and average worker compensation of $41,442. With so many people out of work, the average compensation (not including state benefits) is expected to fall.
At the same time, not many CEOs are losing their paychecks or their jobs, and many are watching their stock prices rise, which will boost stock option compensation. Both trends will drive up the ratio higher, making the workplace even more unequal between the executive suites and the shop floor.