US Stock-Based Pay Hits $333 Billion, With Tech Driving More Than $170 Billion
Updated
Updated · Reuters · Jun 10
US Stock-Based Pay Hits $333 Billion, With Tech Driving More Than $170 Billion
3 articles · Updated · Reuters · Jun 10
Summary
$333 billion in annual stock-based compensation through 2025 marks a 9% rise, tying a larger share of U.S. worker pay directly to equity markets.
Tech and communications drove the surge: their stock awards jumped 25% last year to more than $170 billion, equal to 3.9% of combined sector revenue.
Morgan Stanley said stock pay now makes up about 10% of overall compensation, but 30% or more in parts of tech, with every sector increasing usage and utilities posting 28% growth.
That matters beyond payroll because the top 20% of U.S. earners account for nearly two-thirds of consumer spending, suggesting Wall Street gains may increasingly support Main Street demand.
The trend also complicates labor-income data: a 2021 study found including equity pay sharply reduces the apparent decline in labor's share, recasting many high-skilled workers as 'human capitalists.'