Wednesday, May 22, 2013

How much do CEOs really make?

The Huffington Post observes that pay for "[t]he head of a typical large public company" was $9.7 million in 2012, a record high. But what really is the "typical" large company, anyways?

From the BLS, the mean Corporate Executive pay is $176,840, and the median $168,140. Obviously the well-paid outliers drive up the mean, which explains why it's higher than the median. However, the enormously well-paid executives are indeed outliers.

There are roughly a quarter of a million Corporate Executives employed in the U.S., and the vast majority are not seeing seven-figure salaries. The public furor over excessive corporate pay is an anomaly for the profession, not the norm. But depending what sample you look at, there is always something to feel outraged about.

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