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16h ago

CEO-to-Worker Pay Ratio Hits 285-to-1 as Disclosure Rules Face Rollback

AFL-CIO data shows corporate chiefs saw pay rise 7% in 2024 before securing average tax cuts of $490,000 from the new reconciliation law.

Commuters wait to board a red line train at the Metro Center metro station in Washington, DC, US, on Thursday, April 17, 2025.
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Starbucks CEO Brian Niccol was paid far more than the typical worker at the company.
A protester holds a sign reading "eat the rich, feed the poor" during a press conference and rally in support of fair taxation near the U.S. Capitol in Washington, D.C., on April 10, 2025.

Overview

  • In 2024 the average CEO at S&P 500 companies earned $18.9 million, a 7% increase over 2023, while median U.S. workers received a 3% raise to $49,500, widening the pay ratio to 285-to-1—the highest since 2021.
  • Restricted stock awards comprised nearly half of CEO compensation in 2024, with average bonuses adding another $4 million.
  • Starbucks CEO Brian Niccol’s $98 million package created a 6,666-to-1 pay gap and has spurred union drives by Starbucks Workers United, and Patrick Smith of Axon Enterprise led the S&P 500 with nearly $165 million.
  • The 2025 reconciliation law will deliver average tax cuts of about $490,000 to CEOs compared with $765 for typical workers, magnifying after-tax gains for executives.
  • The Securities and Exchange Commission is considering loosening CEO-to-worker pay-ratio disclosure rules, prompting labor groups to warn that reduced transparency could obscure growing compensation gaps.