As you might expect, it pays to be a Chief Executive Officer. The average pay for a CEO in the UK is £93,285 per year – however, that is a far cry from the paychecks of the CEOs of Silicon Valley.
Since 1978, CEO pay has increased by 937% whereas typical worker’s compensation grew a meager 10.2% over the same time period. Is it wrong that the Chief Executive of a successful company is paid hundreds of times the salary of his or her average employee? Or is CEO a demanding enough job requiring such highly developed skills that these high salaries are well deserved?
Google, Oracle, Salesforce and IBM have some of the biggest salary differences, whilst Amazon, Dell, Facebook and Apple have the lowest difference between CEO and average employee salaries. Surprisingly, Tesla’s CEO Elon Musk has a lower salary than his average employees; a measly $37,584 compared to their take home of $95,224.
Shantanu Narayen is among the world’s top paid tech CEOs. He started his career at Apple, and later moved to Silicon Graphics. He then co-founded Pictra Inc. before becoming CEO of Adobe. Narayen’s pay package grew 3% last year, climbing to $18.7 million, whereas the average Adobe worker was paid $87,000; a pay ratio of 1:211.
Google CEO Sundar Pichai made a whopping $100.6 million in total compensation last year. Pichai joined Google in 2004 and conducted many roles including vice president of product management, and led a team working on Google’s Chrome browser and operating system. He is now not only the highest paid tech CEO but also one of the world’s highest-paid CEOs. Compared to the average Google employee who received $89,000; that’s a pay ratio of 1:1130 – the difference in pay could buy the average worker 130,745 of the latest Google Pixel phones! This is the biggest difference in pay of all the documented companies.
Ecard Shack compared some of the top tech CEO salaries to average worker’s pay to reveal the huge difference in take home salaries. So, how much more do the highest-paid tech CEOs really earn compared to their workers?