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EconomicPolicyInstitute

CEO pay is down, but remains high

In 2015, CEOs in America’s largest firms made 276 times the annual average pay of the typical worker, according to a new report by EPI’s Lawrence Mishel and Jessica Schieder. CEO compensation decreased by 5.1 percent between 2014 and 2015, due largely to a dip in stock market prices in late 2015. Nevertheless, average compensation for top CEOs was still high in 2015, at $15.5 million.

CEO PAY

The growth of CEO pay

While CEO compensation in the largest firms dipped temporarily in 2015, it still remains 940.9 percent above its 1978 level. A new Economic Snapshot shows that CEO compensation grew faster than the wages of the top 0.1 percent and the stock market.

WORKING CLASS

EPI continues to be the voice of the working class

At a recent EPI event, nationally syndicated Washington Post columnist E.J. Dionne said, “There is something very odd that it took Donald Trump’s candidacy to have a lot of people discover that there is a working class out there that is hurting and needs help—and Larry [Mishel] and EPI have been the conscience of this city for a long time in calling people’s attention to the condition of American workers, and we are grateful to you.” See EPI’s recent research on the working class here and here.

RETIREMENT

Morrissey testifies on retirement insecurity

EPI’s Monique Morrissey testified before the House Budget Committee on Wednesday on the state of American retirement. Morrissey testified that the so-called 401(k) revolution has been terrible for all but the wealthiest Americans—and that she recommends expanding Social Security, among other measures.

IN THE NEWS
Reuters
In a USA Today column, EPI’s Robert Scott critiqued Donald Trump’s use of EPI research, writing that Trump’s claim that “the negotiation of great trade deals is the quickest way to bring our jobs back” is just wrong. | "Hey Donald, you have my research all wrong: Voices" »
Reuters
In CBS MoneyWatch’s coverage of EPI’s CEO pay report, EPI’s Lawrence Mishel explained that the consequence of rising CEO pay is that a lot of profit growth is skimmed off to the top and is not available to everyone else. | "In 2015, CEOs got a … pay cut" »
Reuters
The Huffington Post also covered EPI’s CEO pay report, noting, “CEO pay has risen along with the income of other members of the top 1 percent of earners in the U.S., while the incomes of everyone else have stayed fairly flat.” | "1 Obscene Statistic Helps Explain Why Income Inequality Is So Bad" »
Reuters
Michael Hiltzik of the Los Angeles Times referenced EPI’s Valerie Wilson’s report calling for full employment for African Americans and noting how black unemployment is more volatile than that of whites. | "Economic inequality is the cause and the consequence of our racial problems" »
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