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AI-Fueled CEO Pay

CEOs are rushing to incorporate artificial intelligence (AI) into their businesses.

Worker wages are falling behind inflation.

CEO-to-worker pay ratios remain unacceptably high.

ceos continue

S&P 500 Index Company CEO Pay Has Increased $5 Million Over the Past Decade

CEO pay increase over the years 2022

CEOs continue to make millions while workers’ real wages decline:

Delivery

In 2022, CEOs of S&P 500 companies received, on average, $16.7 million in total compensation. This was the second-highest level of CEO pay in history for S&P 500 Index companies.

The average CEO-to-worker pay ratio was 272-to-1 for S&P 500 Index companies in 2022; overall, U.S. workers’ real hourly wages fell in 2022 for the second year in a row by -1.6% after adjusting for inflation.

CEO Pay Matters

The ratio of CEO-to-worker pay is important. A higher pay ratio could be a sign that companies suffer from a winner-take-all philosophy, where executives reap the lion’s share of compensation. A lower pay ratio could indicate the companies that are dedicated to creating high-wage jobs and investing in their employees for the company’s long-term health.

View CEO Pay Data   View Company Pay Ratios

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stats

272 Times More The average S&P 500 CEO-to-worker pay ratio in 2022.
$16.7 Million The average compensation of S&P 500 company CEOs in 2022.
$5 Million The amount the average S&P 500 CEO’s pay has increased in the past decade.
18% Decline How much the S&P 500 Index fell in 2022, including dividends.

How S&P 500 Company CEO Pay Breaks Down

 
Pay Type Average Amount
Salary $1,203,457
Bonus $306,199
Nonequity Incentives $2,626,463
Restricted Stock $9,944,362
Stock Options $2,106,242
Retirement Plans $94,334
All Other $411,769
Total $16,694,194

CEO Pay by State

Too many working people across the country are struggling to afford the basics, much less save for college or retirement. Some states serve as stark examples of the incredible gap between CEOs and the hardworking people who make their companies profitable.

This map shows how the CEO pay at companies headquartered in each state compares to the pay of the average employee in the state.

State Icon
State Name
Top-line Numbers:
  • Average S&P 500 CEO Pay: CEO pay
  • Average Russell 3000 CEO Pay: CEO pay
  • Average Worker Pay*: Worker pay
  • S&P 500 CEO-to-Worker Ratio: Ratio
  • Russell 3000 CEO-to-Worker Ratio: Ratio

See all in this state
*State average employee pay data is from the U.S. Bureau of Labor Statistics’ State Occupational Employment and Wage Estimates.
CEO Pay by State

CEO Pay by Industry

S&P 500 company CEO pay was the highest in the communication services industry in 2022. The average ratio of CEO-to-worker pay is also the highest in the communication services industry, where Live Nation Entertainment had the highest CEO-to-worker pay ratio in the S&P 500 Index of 5,414-to-1.

 

Industry Average CEO Pay Average Pay Ratio
Communication Services $37,581,870 508:1
Consumer Discretionary $14,035,044 480:1
Consumer Staples $14,629,942 407:1
Energy $16,288,704 118:1
Financials $17,672,213 218:1
Health Care $15,991,308 225:1
Industrials $13,299,271 196:1
Information Technology $22,215,146 357:1
Materials $14,015,577 218:1
Real Estate $14,145,284 168:1
Utilities $10,735,588 94:1

one million

$100 Million CEOs and Artificial Intelligence

Artificial intelligence (AI) is here and here to stay. The New York Times reports that nearly half of all jobs will be exposed to some form of AI automation that will disrupt and displace workers.

This AI revolution has the potential to unleash greater productivity and create broad-based prosperity, but it also has the power to cause widespread job loss and dramatic income inequality if CEOs and wealthy corporations have the final say.

This moment presents a clear choice for our society.

Right now, employers are deploying increasingly sophisticated AI-enhanced technologies without workers’ consent to monitor workers and to hire, control, evaluate, discipline, and even fire workers.

These powerful algorithmic monitoring tools can have significant negative impacts on employee privacy, economic security, dignity and autonomy on the job.

Wealthy CEOs like Bob Iger, whose new employment agreement as the returning CEO of the Walt Disney Co. promises him $31 million annually, believes workers’ calls for just compensation and protections from job disruption are not “realistic.”

To protect our jobs, our rights and our futures, workers must lead the way.

Whether AI is used to empower working people or is used to dehumanize work is a choice. By coming together in unions, we can negotiate for how AI will be used.

The AI future will be here soon as CEOs are rushing to incorporate AI into their businesses without protections for workers or workers having input on how AI will be used. Here is how the 10 highest-paid CEOs in 2022 are using AI:

#1
Blackstone

Stephen Schwarzman, Chairman and CEO

Blackstone Inc.

$253,122,146

1,068:1 pay ratio
 
Stephen Schwarzman, CEO of the private equity firm Blackstone, gave $350 million to the Massachusetts Institute of Technology (MIT) in 2018 to found the MIT Stephen A. Schwarzman College of Computing to study how to make AI ethical. Announcing the gift, he wrote an editorial warning that “most companies and industries are about to be transformed, if they haven’t been already, by artificial intelligence.” To celebrate the gift to MIT, he reportedly hosted a robot-themed party featuring dancing robots at his Park Avenue apartment in New York City.
#2

Sundar Pichai, CEO

Alphabet Inc.

$225,985,145

808:1 pay ratio
 
Sundar Pichai, the CEO of Alphabet and its subsidiary Google, has written editorials warning that “AI is too important not to regulate” and that “[c]ompanies such as ours cannot just build promising new technology and let market forces decide how it will be used.” In January 2023, Alphabet cut 12,000 jobs as part of a restructuring to focus on AI after concerns that the company was falling behind. A subsequently leaked Google engineer’s memo had warned that open source AI could overtake the company.
#3

Stephen Scherr, Chair and CEO

Hertz Global Holdings Inc.

$182,136,137

4,983:1 pay ratio
 
Stephen Scherr, CEO of the rental car company Hertz Global Holdings, is using AI to help set rental car prices and testing AI to replace human car inspectors. Hertz recently invested in a self-service electric vehicle rental company that uses AI technology. During the COVID-19 pandemic, Hertz laid off 10,000 employees. Many of these jobs have not returned with the resurgence in travel. As of the end of 2022, Hertz employed 19,000 workers in the United States, down from 29,000 at the end of 2019.
#4

Barry McCarthy, CEO and President

Peloton Interactive Inc.

$168,073,420

2,299:1 pay ratio
 
Barry McCarthy, the CEO of exercise equipment maker Peloton Interactive, was hired to turn the company around after Peloton’s stock price fell by 95%. With its fourth round of layoffs in 2022, the company laid off more than half of its workforce with severance packages that included a complimentary Peloton membership. As part of the turnaround strategy, Peloton outsourced production of its exercise equipment to an overseas company. While the company did not lay off its instructors, Peloton has introduced a smart camera that acts as a personal trainer by using AI to track its users’ exercise movements.
#5
live nation

Michael Rapino, President and CEO

Live Nation Entertainment Inc.

$139,005,565

5,414:1 pay ratio
 
Michael Rapino, CEO of Ticketmaster parent Live Nation Entertainment, introduced dynamic pricing algorithms to music concert and sporting event ticket sales. By changing prices according to demand, dynamic pricing has been blamed by fans for rising ticket prices. Live Nation’s CEO-to-worker pay ratio of 5,414:1 was the highest in the S&P 500 Index in 2022, and a majority of its shareholders voted against the company’s advisory vote on 2022 executive pay.
#6
oracle

Safra Catz, Chief Executive Officer

Oracle Corp.

$138,192,032

1,842:1 pay ratio
 
Safra Catz, CEO of the business software company Oracle, credited AI for the company’s record-setting $50 billion revenue for the company’s 2023 fiscal year, explaining to shareholders that “we are seeing unprecedented demand for our cloud services and especially our AI services.” Oracle recently announced that it will be incorporating AI into its Human Resources business services that many companies use for hiring new employees and providing performance evaluations.
#7
Sarepta

Douglas Ingram, President and Chief Executive Officer

Sarepta Therapeutics Inc.

$124,938,694

494:1 pay ratio
 
Douglas Ingram, CEO of biopharmaceutical company Sarepta Therapeutics, has partnered with Dyno Therapeutics to use AI and machine learning to develop gene therapies. The U.S. Food and Drug Administration recently approved the company’s gene therapy for muscular dystrophy in children that costs $3.2 million for the one-time treatment. Sarepta shareholders overwhelmingly rejected the company’s 2022 advisory vote on executive compensation by more than a 2-to-1 margin.
#8
Pinterest

Bill Ready, Chief Executive Officer

Pinterest Inc.

$122,651,735

999:1 pay ratio
 
Bill Ready, CEO of social media platform Pinterest, says of his company’s AI: “We're making sure that it's additive to people's lives, not addictive, which I think has been one of the criticisms of some of what has happened with AI and social media over the last many years is that in a lot of ways it was becoming more and more addictive—connecting you to things that make you engage for longer but may not make you feel better after you engage with it.” Pinterest uses AI neural networks to identify images that will catch its users’ attention and to target advertisements to its users.
#9
CS Disco

Kiwi Camara, Co-Founder, Chief Executive Officer and Director

CS Disco Inc.

$109,531,440

Undisclosed pay ratio
 
Kiwi Camara, CEO of legal services company Disco, took his company public in 2021. According to the company, “recent technological advances such as AI and cloud computing have reached a point of technological maturity where they can enable legal technology applications to transform legal work and automate much of the previously manual, time-consuming work done by legal professionals.” Coincidentally, the National Association for Law Placement estimates that big law firm’s recruitment of law students has declined 2% for summer 2023 compared to the previous year.
#10
Workday

Carl Eschenbach, Co-Chief Executive Officer

Workday Inc.

$102,685,309

439:1 pay ratio
 
Carl Eschenbach, co-CEO of human resource software company Workday, explains that his company has built AI and machine learning into its software platform instead of “bolting” them on. He also has described the AI revolution by saying, “This is real. It is happening. This is the next big tectonic shift.” A class-action lawsuit against Workday has alleged that the company’s job applicant AI screening tools that are used by many businesses are discriminatory against protected classes of workers.

Case Study: How AI is Undermining Job Security in the Entertainment Industry

Artificial Intelligence (AI) is starting to revolutionize the entertainment industry. AI chatbots have been called “plagiarism machines” for creating movie and television scripts based on screen and television writers’ previously written content. AI can be used to duplicate background actors and even create synthetic performances using deep fake technology.

In 2023, screen and television writers affiliated with the Writers Guild of America and performers affiliated with SAG-AFTRA went on strike against the Alliance of Motion Picture and Television Producers. These members are seeking a voice in how AI is used in the entertainment industry to protect their rights to the content they have created.

To ensure that AI does not undermine the role of human beings creating media and entertainment content, workers are demanding safeguards with the use of AI for writing scripts and for creating synthetic performances. Here are the CEOs of the major entertainment companies and their 2022 total compensation:

Company Name Title Total Compensation Pay Ratio
Apple Inc. Tim Cook Chief Executive Officer $99,420,097 1,177:1
Netflix Inc. Reed Hastings Co-Chief Executive Officer, President and Chairperson of the Board $51,073,237 234:1
Netflix Inc. Ted Sarandos Co-Chief Executive Officer and Chief Content Officer $50,299,296 230:1
Amazon.com Inc. Douglas Herrington CEO, Worldwide Amazon Stores $43,215,779 1264:1
Amazon.com Inc. Adam Selipsky CEO, Amazon Web Services $41,113,295 1202:1
Warner Bros. Discovery Inc. David Zaslav President and Chief Executive Officer $39,288,458 227:1
Comcast Corp. Brian Roberts Chairman of the Board and Chief Executive Officer $32,069,850 385:1
Paramount Global Robert Bakish President and Chief Executive Officer $32,046,006 291:1
The Walt Disney Co. Robert Chapek Former Chief Executive Officer $24,183,003 446:1
Fox Corp. Lachlan Murdoch Executive Chair and Chief Executive Officer $21,748,681 237:1
Sony Group Corp. Kenichiro Yoshida Chairman and CEO $15,395,569 (est.)* Undisclosed
The Walt Disney Company Robert Iger Chief Executive Officer $14,998,299 276:1
Amazon.com Inc. Andy Jassy President and Chief Executive Officer $1,298,723 38:1

*Sony CEO Kenichiro Yoshida received the following compensation for the fiscal year that ended March 31, 2023, during which the average exchange rate was 135.4 yen to the U.S. dollar:

Fixed Remuneration 240 million yen
Remuneration Linked to Business Results 411 million yen
Stock Acquisition Rights 160,000 options x 3,123 yen = 500 million yen
Restricted Stock 80,000 shares x 11,586 yen = 927 million yen
Other Benefits 7 million yen
Total Compensation 2,085 million yen


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