Changes loom for CEO pay as pandemic drags down values

The typical pay package for CEOs at the biggest U.S. companies topped $12.3 million last year, and the gap between the bosses and their workforces widened further, the AP’s annual survey of executive compensation shows.

Median pay for CEOs in the survey climbed 4.1 percent last year. For the typical worker at their companies, it rose 3.2 percent.

It would take two lifetimes for the typical employee at most S&P 500 companies to make what their CEO did, or 169 years, data analyzed by Equilar shows.

For the first time since the AP’s annual pay survey began in 2011, a woman is at the top of the list: Lisa Su of

Advanced Micro Devices.

She had compensation valued at $58.5 million after guiding her company’s stock to the best performance in the S&P 500 for two straight years.

Otherwise, the top of the pay rankings again includes several familiar names from the media and entertainment industries, such as Walt Disney’s Robert Iger and Netflix’s Reed Hastings.

CEOs such as Alphabet’s Sundar Pichai and Intel’s Robert Swan had packages that were valued even higher than Su’s, but were excluded because the AP’s survey looks only at S&P 500 bosses who’ve been in the job at least two years, in part to avoid distortions caused by sign-on bonuses.

Of course, the survey’s results are from before the coronavirus pandemic upended everything.

Now, there’s a chance the outbreak will do what rising anger about income inequality hasn’t in recent years: pull executive compensation lower.

Hundreds of CEOs across the country already have said they’ll forgo some or all of their salary. And the turmoil in the stock market and the global economy could make it tougher for CEOs to meet performance targets and threaten the stock awards and bonuses that make up the majority of their pay.

Executive pay already was under greater scrutiny among those ultimately in charge of how much CEOs get paid: investors who own the company’s stock and elect the directors to the board.