There have been many discussions around CEO pay lately.  Many people are outraged as the economy has sunk into the worst recession since the 1930s, resulting in the lay off of  thousands of workers, but CEOs continue to fight to keep their income intact.  The image and approval ratings of CEOs have hit an all time low, and the government is looking to intervene with “say-on-pay” laws that give shareholders a direct say on CEO compensation in public companies.

But CEOs are fighting back in an open and public way.  Howard Putnam, former CEO of Southwest and Baniff airlines states that “Say-on-pay is just another government regulation and intrusion into free enterprise.”  Those that are against government intervention on CEO pay argue that limiting CEO pay would interfere with market forces, driving top talent away from public companies and into private enterprises where the government could not dictate how much a CEO gets paid.

Compensation experts contend that CEO pay is aligned with company performance, and that there is nothing wrong with paying for top talent that will have a great deal of influence in the success of the company.  But others argue that while most compensation packages are designed to reward CEOs on the upside, most don’t have enough negative consequences on the down side.

Regardless of what side of the argument you are on, and whether you think CEO pay is fair or not, the fact is that CEO pay at S&P 500 companies is more than 200 times greater than the average worker’s pay.  How much are we talking about? Take a look at the median CEO compensation in different industries:

Basic Materials & Energy – $9.7 million

Conglomerates – $7.7 million

Consumer Goods – $9.8 million

Financial Services – $7.8 million

Health Care – $10.5 million

Industrials – $9.0 million

Services – $7.2 million

Technology – $6.6 million

Utilities – $6.2 million

With the median S&P 500 CEO making $8 million per year, it is no wonder that there is so much interest in what it takes to become a CEO.   If you are interested in becoming a CEO yourself, getting a position in one of 19 companies that are considered CEO factories is certain to increase your likelihood of reaching your goal.  See the article How to Become CEO –CEO Factories for more information on this subject and for a list of the top companies to work for if your ambition is to someday become a CEO.