Since the 2008 economic downturn, many companies have been scrimping on employee raises and bonuses as a cost-cutting measure. However, it seems that the belt-tightening hasn’t extended to CEOs, many of whom continue to enjoy hefty bonuses and salary increases, despite the sluggish financial revival within certain companies.
According to a study by Towers Watson & Co., which analyzed 500 corporations from the Standard & Poor’s 1500 list, the annual remuneration of CEOs surged by 12.1% last year, marking the sharpest rise since 2010. This is a stark contrast to the modest median increase of just 1.6% back in 2013.
On the other end of the spectrum, the pay growth for regular workers clipped at about 3% according to recent surveys conducted by Trinity Mercer and again, Towers Watson & Co. It’s worth noting, however, that there have been some notable exceptions to this general trend.
For a more in-depth examination of the discrepancy between the pay raises of CEOs and regular employees, head over to Market Watch.
Photo Courtesy: Joe Houghton.
