US wealth gap widens as CEO pay outpaces worker wages

Reports indicate a widening economic gap in the United States, characterized by significant growth in wealth for the ultra-rich while working families face increasing financial strain. According to the Institute for Policy Studies’ Executive Excess 2026 report, the disparity between executive and worker compensation continues to rise. Within the ‘Low-Wage 100’—a group of S&P 500 companies with the lowest median pay—average CEO compensation reached $17.5 million in 2025, while the median worker pay was $36,571. This results in a ratio where a single CEO earns as much as 614 workers.

Economic data shows that during the first year of the Trump administration, CEO pay grew 20 times faster than worker wages. By the end of 2025, the top 1% of Americans held nearly 30% of the country's aggregate wealth, whereas the bottom 50% held just over 5%.

While the top 10% of earners accounted for a record share of consumer spending in 2025, many low-income Americans are cutting back on essentials. Surveys indicate that 60% of Americans have altered grocery shopping habits to stay within budget, 31% have delayed medical treatment due to costs, and 25% have taken on additional work to meet financial responsibilities.