When CEO pay exploded (update)
Sep 17, 2025•23 min
Listen to this episode in Metacast mobile app
Don't just listen to podcasts. Learn from them with transcripts, summaries, and chapters for every episode. Skim, search, and bookmark insights. Learn more
Summary
Explore the surprising history behind the dramatic surge in CEO compensation, which unexpectedly took off in the mid-1990s. This episode delves into how a Bill Clinton-era tax law, intended to tie executive pay to performance, inadvertently led companies to heavily favor stock options, especially given an accounting rule that made them appear "free." Discover the protests against attempts to change these rules, the subsequent temporary decline after the dot-com bubble, and an update on current pay trends, including the impact of Dodd-Frank's disclosure requirements.Episode description
(Note: A version of this episode originally ran in 2016.)
It’s no secret that CEOs get paid a ton – and a ton more than the average worker. More than a hundred times than what their average employee makes.
But it wasn’t always this way. So, how did this gap get so vast? And why?
On today’s episode … we go back to a specific moment when the way CEOs were paid got changed. It involves Bill Clinton's campaign promises, and Silicon Valley workers taking to the streets to protest an accounting rule. And of course, Dodd Frank.
Subscribe to Planet Money+
Listen free: Apple Podcasts, Spotify, the NPR app or anywhere you get podcasts.
Facebook / Instagram / TikTok / Our weekly Newsletter.
This episode was hosted by Jacob Goldstein and Stacey Vanek Smith, and was originally produced by Nick Fountain. This update was reported and produced by Willa Rubin and edited by Alex Goldmark.
See pcm.adswizz.com for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences.
NPR Privacy Policy
It’s no secret that CEOs get paid a ton – and a ton more than the average worker. More than a hundred times than what their average employee makes.
But it wasn’t always this way. So, how did this gap get so vast? And why?
On today’s episode … we go back to a specific moment when the way CEOs were paid got changed. It involves Bill Clinton's campaign promises, and Silicon Valley workers taking to the streets to protest an accounting rule. And of course, Dodd Frank.
Subscribe to Planet Money+
Listen free: Apple Podcasts, Spotify, the NPR app or anywhere you get podcasts.
Facebook / Instagram / TikTok / Our weekly Newsletter.
This episode was hosted by Jacob Goldstein and Stacey Vanek Smith, and was originally produced by Nick Fountain. This update was reported and produced by Willa Rubin and edited by Alex Goldmark.
See pcm.adswizz.com for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences.
NPR Privacy Policy
For the best experience, listen in Metacast app for iOS or Android