Findings from the Economic Policy Institute, published Sept. 19, analyzed average CEO pay from the 350 largest publicly owned firms in the U.S., using data from Compustate ExecuComp and The Wall Street Journal.
From 2022 to 2023, realized compensation for CEOs dropped 19.4% to $22.2 million. Granted compensation declined by 14.1%, according to the report.
Realized compensation includes the value of stock options when they are used and granted compensation measures stock options and awards when they are first granted, the researchers wrote.
The drop occurring during a steady stock market period could be attributed to a shift in stock-related pay away from options, according to the report.
Realized stock awards and options comprised 76.6% of CEO compensation in 2023, compared to 70.2% of CEO pay in 2006. Stock awards are becoming a greater portion of CEO pay, while share of stock options has decreased, the researchers wrote.
Although CEO pay declined, the typical worker-to-CEO pay ratio remains higher than in the past, with CEOs paid 290 times more than the typical worker in 2023, compared to 21 times the typical workers in 1965, the report said.
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