(Reuters) - Chief executive officers at major U.S. companies saw a pay hike of more than 6 percent on average in 2017, widening the earnings gap with rank-and-file workers, according to a labor group analysis released on Tuesday.
The CEO of an S&P 500 company, on average, earned $13.94 million in 2017, 361 times more than the average worker, according to AFL-CIO, the largest federation of U.S. labor unions.
“This year’s report provides further proof of America’s income inequality crisis,” said AFL-CIO secretary-treasurer Liz Shuler.
The average production and nonsupervisory worker earned some $38,613 per year, according to the federation’s data.
The average wage has remained stagnant for more than 50 years, when adjusted for inflation, the federation said.
The labor group’s annual study often draws notice as a measure of how U.S. workers are largely not sharing the economic gains of those at the top of the income scale, even as official unemployment remains low.
The federation has cited an increase in outsourcing of good-paying American jobs as the reason for the stagnancy.
“Our economy works best when consumers have money to spend. That means raising wages for workers and reining in out-of-control executive pay” Shuler added.
Reporting by Diptendu Lahiri in Bengaluru; Editing by Shailesh Kuber