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Submission + - CEO Pay Increased 127 Times Faster Than Worker Pay Over Last 30 Years (thinkprogress.org)

suraj.sun writes: From 1978 to 2011, CEO pay at American firms has risen 725 percent, a rise substantially greater than stock market growth and the painfully slow 5.7 percent growth in worker compensation, more than 127 times faster than worker pay over the same time period, according to new data from the Economic Policy Institute. In 1978, CEOs took home 26.5 times more than the average worker. They now make roughly 206 times more than workers, EPI found. The pay isn’t always tied to the performance of their businesses — as ThinkProgress has noted, CEOs at companies like Bank of America often pocket huge pay increases even as the company’s stock price plummets and jobs are cut. On the other end, workers’ wages aren’t tied to productivity either. Despite substantial gains in productivity since the 1970s, worker pay has remained flat.

As a result, American income inequality has skyrocketed, growing worse than it is in countries like Pakistan and Ivory Coast. Wealth inequality is worse than it was even in Ancient Rome. And, as pay skyrockets and tax rates fall for the richest Americans, the rising inequality has left the bottom 95 percent of Americans saddled with more debt than ever before.

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