Your boss is earning almost 200 times more than you, here's how

We know our bosses earn much more than we do, but are we aware of just how much more? A recent analysis by Equilar and The Associated Press revealed that in 2023, the median CEO in the S&P 500 was paid a staggering 196 times more than the median employee. This disparity only seems to be growing, with CEO pay on the rise while everyday employees struggle to keep their heads above water amidst rising inflation.

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The Deloitte India Executive Performance and Rewards Survey 2024 highlighted that the average CEO salary in India reached Rs 13.8 crore.

For CEOs who are also promoters or part of the promoter family, this figure escalates to an average of Rs 16.7 crore.

The report also indicates that over 50% of target compensation is designated as 'pay-at-risk', referring to the portion of an employee's sales compensation that is variable or subject to being unreceived.

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Interestingly, professional CEOs experience a significantly higher pay-at-risk percentage at 57% compared to promoter CEOs at 47%.

Additionally, professional CEOs receive 25% of their target compensation through long-term incentives like share-linked incentives.

On the other side of the globe, the median S&P 500 employee saw a salary increase to $81,467 last year, marking a 5.2% rise from 2022.

To put this into perspective, this translated to an annual pay hike of approximately $4,300 (roughly Rs 3.6 lakhs) for workers.

In stark contrast, CEOs enjoyed an additional $1.5 million in their annual compensation.

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