Over the past several decades, the compensation of CEOs of large U.S. corporations has
A) remained relatively stable once inflation is taken into account.
B) become based more on salary and less on stock options.
C) increased enormously, even when inflation is taken into account.
D) consistently lagged behind the compensation of top executives in Europe and Asia.

Question

Quizplus · Accepted Answer

The compensation of CEOs of large U.S. corporations has increased enormously over the past several decades, even when inflation is taken into account. This trend is supported by multiple studies and reports. For example, according to a report by the Economic Policy Institute, CEO compensation has grown 940% since 1978, while typical worker compensation has risen only 12%. Additionally, a study by the Institute for Policy Studies found that in 2020, the average CEO of a S&P 500 company earned $15.3 million in total compensation, which represents a 0.6% increase over the previous year. This trend towards increasingly high CEO compensation has been a topic of much debate and concern in recent years.

Over the Past Several Decades, the Compensation of CEOs of Large