Career Development » CEO Pay Ratio: How About 2,000 to 1?

CEO Pay Ratio: How About 2,000 to 1?

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April 13, 2015

Despite requirements in 2010’s Dodd-Frank law, the CEO pay ratio – the comparison of chief executive pay to the median annual total compensation of other employees – is not being included in SEC disclosures. In 2013 the SEC outlined a specific pay-ratio rule detailing what such disclosures should look like, but corporate lobbyists have kept the rule in limbo. A 2014 Economic Policy Institute study showed that CEO pay as a multiple of average worker’s pay neared 300 times in 2013, up dramatically from 25 times in 1965. Walt Disney boasted the widest pay gap, according to compensation analytics firm Equilar, with CEO Robert Iger taking home $43.7 million last year, about 2,238 times more than the average Disney employee, who earned about $19,530.

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