WASHINGTON (Reuters) - Top executives at major businesses last year made as much money in one day of work on the job as the average worker made over the entire year, according to a report released on Wednesday.
Chief executive officers from the nation’s biggest businesses averaged nearly $11 million in total compensation, according to the 14th annual CEO compensation survey released jointly by the Institute for Policy Studies based in Washington and United for a Fair Economy, a national organization based in Boston.
At the same time, workers at the bottom rung of the U.S. economy received the first federal minimum wage increase in a decade. But the new wage of $5.85 an hour, after being adjusted for inflation, stands 7 percent below where the minimum wage stood a decade ago.
“CEO pay, over that same decade, has increased by roughly 45 percent,” the study found.
On average, CEOs at major American corporations saw $1.3 million in pension gains last year. By contrast, 58.5 percent of American households led by a 45- to 54-year old even had a retirement account in 2004, the most recent year these figures were available.
According to the report, between 2001 and 2004, retirement accounts of these average households gained only $3,775 in value a year.
The top 386 CEOs in the study took in perks, such as housing allowances and travel benefits, worth on average $438,342 in 2006. It would take a minimum wage worker 36 years to earn the equivalent of what CEOs averaged in just perks alone.
The 20 highest-paid individuals at publicly traded corporations last year took home, on average, $36.4 million. That’s 38 times more than the 20 highest-paid leaders in the non-profit sector and 204 times more than the 20 highest-paid generals in the U.S. military.
American executives significantly out-earn their European counterparts, the study found. In 2006, the 20 highest-paid European managers made an average of $12.5 million, a third as much as the 20 highest-paid U.S. executives took home last year.
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