CEO Pay Multiplier
In 1965 it was 21x. The ratio has since compounded faster than virtually any asset class available to median workers.
In 1965, the average S&P 500 CEO earned approximately 21 times the pay of a typical American worker. By 1989 it was 61x. By 2000 it reached 344x before declining during the dot-com bust. It climbed again through the 2010s bull market and has remained near 350x since. The ratio reflects the structure of executive compensation, which is heavily weighted toward stock options and restricted stock grants that appreciate multiplicatively in sustained equity bull markets — an asset class inaccessible to most of the workers in the denominator.
Economic Policy Institute's annual analysis of S&P 500 CEO compensation (salary, bonus, stock options realized, and restricted stock grants vested) versus median worker pay. CEO compensation uses the 'realized' method, reflecting the value of options actually exercised in the measurement year rather than granted. Annual publication typically lags 12–18 months.