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Are American CEOs Paid Too Much? Are American CEO’s overpaid? In my opinion, they are. In America today, CEO’s of various companies are known for their high position and for their high salary. According to the Business Journal, the average CEO’s of an S&P 500 firm earned $2.7 million yearly in 1992. By 2000, the average pay for these CEOs increased to more than 400 percent totaling to approximately $14 million per year. When compared to average workers, the pay increase is even more dramatic. Is this increase justifiable? In 1992, CEOs were paid 82 times the average of blue-collar workers. In 2004, this amount increased to over 400 times. According to the Bureau of Labor Statistics, the average production worker fared less well in 2003. Their annual pay was $26,899 in 2003, up just 2.1% from 2002. The average worker took home $517 in their weekly paycheck in 2003; the average large company CEO’s took home $155,769 in their weekly pay. If the minimum wage had increased as quickly as CEO pay since 1990, it would be $15.71 per hour today. This is more than three times the current minimum wage of $5.15 an hour. While workers are increasingly anxious about their job security, and how they will pay the rising costs of everything from health insurance to housing, from college to gasoline, corporate executives continue to distance themselves from the cares and worries of those they lead. It sends a poor message to demand cost cutting from the factory floor, while costs in the ...