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Companies are doing a lousy job of dealing with CEO-to-worker pay gaps, survey says

Eighty-four percent of Americans think it’s important for companies to avoid a major pay gap between CEOs and employees, and yet only 15% of Americans believe companies are doing a good job of reining in such gaps, according to a new confidence survey from Bentley University and Gallup. The study, released this month , found that 97% of Americans also say it is important for business to make…

Companies are doing a lousy job of dealing with CEO-to-worker pay gaps, survey says

A recent survey has revealed that a majority of Americans are concerned about the significant disparity in pay between CEOs and their employees, yet they perceive companies are failing to address this issue effectively. Conducted by Bentley University and Gallup, the study indicates that 84% of Americans believe it is crucial for companies to avoid a major pay gap between CEOs and workers, but only 15% think companies are succeeding in this endeavor.

Additionally, an overwhelming 97% of respondents emphasize the importance of businesses operating ethically, yet only 32% believe companies are achieving this goal.

In 2025, the compensation for CEOs at the top 350 U.S. firms increased by 14%, excluding the extraordinary package given to Elon Musk at Tesla. According to the Economic Policy Institute, CEOs made 325 times as much as the average employee. The study highlights that as executive pay becomes more closely linked to stock prices and company valuations, workers' wages have been growing at a much slower pace over the past decade.

Despite expressing low satisfaction with companies' handling of pay gaps, Americans still have more confidence in businesses than in federal leaders for decision-making and impact. The survey found that 51% of U.S. adults rated the federal government as effective in making a positive impact on people's lives last year, but this number dropped by eight percentage points to 43% this year.

There is a substantial 49-point gap between those who believe the federal government has the potential to make a difference and those who think it is actually effective in doing so.

While Americans generally approve of businesses' ability to make productive decisions, they still expect certain ethical practices from companies.

Written by urgent.news from Fast Company's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at fastcompany.com →

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