Bloomberg reports that the 100 largest CEO retirement funds are worth a combined $4.9 billion; which is as much as the combined retirement accounts of 41 percent of US families. Many of these retirement funds and benefits packages are for CEO’s of company’s with high CEO-to-worker retirement gaps.
The retirement savings accumulated by just 100 chief executives are equal to the entire retirement accounts of 41 percent of U.S. families — or more than 116 million people, a new study finds.
In a report scheduled for release today, the Center for Effective Government and Institute for Policy Studies found that the 100 largest chief executive retirement funds are worth an average of about $49.3 million per executive, or a combined $4.9 billion. David C. Novak, the recently departed chief executive officer of Yum! Brands Inc., is at the top of the list, with total retirement savings of $234.2 million.
In recent years, pay and income inequality across different income groups have received increasing attention in the U.S. Significantly less attention has been focused on the growing gulf in retirement savings, a lack of focus that the study’s authors say they are attempting to address.
“This CEO-to-worker retirement gap is a lot bigger than the pay gap and one more indicator of the extreme level of inequality that is really tearing the country apart,” said Sarah Anderson, the report’s co-author and the global economy project director at the Institute for Policy Studies.
Some of the chief executives with the biggest retirement stashes are at companies that have cut retirement benefits for new employees.