A forthcoming Bentley University-Gallup poll reveals that 83% of Americans believe it is crucial for businesses to minimize the pay gap between CEOs and average employees, with 56% considering the issue “extremely important.” However, only 13% feel that companies are currently doing a good job in this regard, and 66% rate their performance as “poor” for the third consecutive year.
The Gallup poll shows consistent concerns across different age groups and genders about the widening pay disparity. This sentiment coincides with Tesla shareholders voting on a proposed $40 billion pay package for CEO Elon Musk, a decision whose outcome will be disclosed at Tesla’s annual meeting on Thursday.
An analysis by Equilar and The Associated Press highlights the stark contrast in earnings, noting it would take a typical employee 196 years to earn what their CEO made in a single year. In 2022, CEO compensation, including stock awards, was 185 times that of the median employee’s pay, with CEO pay increasing by 12.6% compared to an average $4,300 raise for S&P 500 employees.
The poll reveals that 70% of individuals aged 18 to 29 believe companies are failing to address the pay gap, closely mirroring the 63% among those aged 60 and above. Similarly, 67% of men and 65% of women share this view.
Prominent examples of excessive CEO compensation include Broadcom CEO Hock Tan, who received $161.8 million last year, and FICO CEO William Lansing, with a total compensation of $66.3 million. FICO defended Lansing’s package, citing exceptional shareholder returns, while Boeing faced criticism for awarding CEO Dave Calhoun $32.8 million in 2023 amid ongoing financial and safety challenges.
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