Published April 5, 2026 · Updated annually
CEO to Worker Pay Ratio: What the Numbers Mean
The CEO-to-worker pay ratio compares total CEO compensation to the median employee salary at the same company. The Dodd-Frank Act requires all public companies to disclose this figure. Across companies in our database, the average ratio is approximately 511:1 — meaning the average CEO earns 511 times more than their typical employee.
How the Ratio Is Calculated
Companies disclose the pay ratio in their annual proxy statement (SEC Form DEF 14A). The formula is straightforward:
Pay Ratio = Total CEO Compensation / Median Employee Compensation
The "median employee" is the worker at the exact middle of the company's pay distribution — 50% of employees earn more, 50% earn less. Companies can choose their methodology for identifying this person, which introduces some variation in how ratios are calculated across firms.
Companies With the Widest Pay Gaps
| Rank | Company | CEO Pay | Pay Ratio | Grade |
|---|---|---|---|---|
| 1 | Berkshire Hathaway | $203.1M | 7,630.604:1 | F |
| 2 | Apple | $666.7M | 7,125.243:1 | D |
| 3 | Microsoft | $551.3M | 6,276.903:1 | D |
| 4 | Meta Platforms | $378.7M | 3,884.909:1 | C |
| 5 | Alphabet | $203.9M | 3,713.689:1 | D |
| 6 | NVIDIA | $245.0M | 3,133.391:1 | C |
| 7 | JPMorgan Chase | $89.0M | 2,943.824:1 | C |
| 8 | Amazon | $265.4M | 2,575.347:1 | B |
| 9 | Eli Lilly | $197.0M | 2,372.29:1 | C |
| 10 | Walmart | $138.0M | 2,047.004:1 | D |
| 11 | UnitedHealth Group | $55.1M | 1,830.299:1 | A |
| 12 | Costco | $65.2M | 1,748.484:1 | A |
| 13 | AbbVie | $81.4M | 1,464.796:1 | D |
| 14 | Visa | $110.5M | 1,387.344:1 | B |
| 15 | Tesla | $133.6M | 1,371.166:1 | C |
Why Ratios Vary by Industry
Pay ratios differ dramatically by sector, and much of the variation comes from the denominator — what the median worker earns — not just the CEO's pay:
- Retail and fast food (500-1500:1) — High ratios because median workers are part-time, hourly employees earning $25-35K while CEOs earn $15-25M
- Technology (200-400:1) — Moderate ratios despite high CEO pay because median tech workers earn $120-180K
- Financial services (150-300:1) — Mid-range ratios with high pay on both sides
- Utilities (50-100:1) — Lower ratios because CEO pay is more restrained and median worker pay is relatively high
Historical Context
The CEO-to-worker pay ratio has grown dramatically since the 1970s. According to the Economic Policy Institute, the ratio was approximately 21:1 in 1965, rose to 61:1 in 1989, hit 293:1 in 2000, and has fluctuated between 250:1 and 400:1 since then. The primary driver is stock-based compensation, which was rare before the 1990s and now comprises the majority of CEO pay.
Whether this trend is a problem depends on your perspective. Proponents argue that CEO pay reflects market dynamics and shareholder value creation. Critics argue that the gap reflects broken governance and board capture, and that workers have not shared proportionally in productivity gains.
Our worst pay ratio ranking shows which companies have the widest gaps, while our Pay-for-Performance Grades evaluate whether CEO pay is justified by company results.
Frequently Asked Questions
Across public companies in our database, the average ratio is approximately 511:1. However, this varies enormously by industry — from under 50:1 at some utilities to over 1,000:1 at large retailers.
Retail, hospitality, and fast food companies consistently have the highest pay ratios because their median workers earn hourly wages while their CEOs receive large stock-based compensation packages. Check our worst pay ratio ranking for the current leaders.
Not necessarily. A high ratio can reflect low median worker pay (common in retail) rather than excessive CEO compensation. Our Pay-for-Performance Grade evaluates whether the CEO's pay is justified by company results, regardless of the absolute ratio.
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