The CEO-to-worker pay ratio is a measure used to compare the remuneration of the CEO of a company to the pay of a typical employee. It is calculated by dividing the CEO's compensation to the median compensation of all employees of the company excluding the CEO.
CEO-to-worker pay ratios have been on the rise over the years in most countries. For example: it's estimated that in the US, this ratio was about 20 to 1 in 1950s, 42 to 1 in 1980, & 204 to 1 in 2013. In 2023, this ratio ranged from 203-541 to 1 in countries like US, UK, India & South Africa.