CEO to Worker Pay Ratios: Average CEO Earns 204 Times Median Worker Pay

Source: Andrew Chamberlain, Glassdoor, Economic Research Blog, August 25, 2015

Executive pay has long been controversial. In recent years, a number of studies have highlighted the gap between CEO pay and average salaries for workers. But all of them suffer from a basic problem: CEO compensation is widely available for public companies, but information about average worker pay is not, making it hard to accurately report the ratio of CEO pay to average worker pay. New rules adopted by the Securities and Exchange Commission (SEC) this month mean all that is about to change. Beginning in 2017, public companies will be required to disclose the ratio of CEO pay to median worker pay, providing transparency into pay inside some of the largest companies—all the way up to the top. At Glassdoor, we have a unique window into worker pay. Since 2008, we’ve collected thousands of voluntary and anonymous salary reports from employees in an effort to encourage pay transparency in the workplace. Using these unique data, the table below offers a sneak preview of what the ratio of CEO pay to median worker pay might look like once these new SEC disclosures go into effect.

In the table below, we show the ratio of CEO pay to median worker pay for companies listed in the S&P 500.. … For each employer, we also show their overall company rating on Glassdoor (based on a 5-point scale: 1.0=very dissatisfied, 3.0=OK, 5.0=very satisfied) as of August 19, 2015…..