Executive compensation: reality is different than what Americans believe

Ling- English, Management 1 Minute

From a nationwide Stanford University survey:

The typical American believes a CEO earns $1.0 million in pay (average of $9.3 million), whereas median reported compensation for the CEOs of these companies is approximately $10.3 million (average of $12.2 million).”

Those who believe in capping CEO pay relative to the average worker would do so at a very low multiple. The typical American would limit CEO pay to no more than 6 times (17.6 times, based on average numbers) that of the average worker. These figures are significantly below current pay multiples, which are approximately 210 times based on recent compensation figures.”

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“Americans and CEO Pay: 2016 Public Perception Survey on CEO Compensation.” Stanford Graduate School of Business, 2016, www.gsb.stanford.edu/faculty-research/publications/americans-ceo-pay-2016-public-perception-survey-ceo-compensation. Accessed 10 Aug. 2023.

 

Published by Richard Brisebois

I help managers develop their craft through executive coaching and leadership development programs. My work draws on experience across multiple countries and cultures, combining academic background with practical application.

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