According to some of the most low-paid big companies in the United States, their CEO pay increased by an average of nearly 35% over the past five years. New research. Their workers’ salaries did not keep up.
As administrative compensation surges, the average CEO salary gap for the 100 companies with the median minimum worker salary in the S&P 500 – the Institute for Policy Research, which calls the Low Pay 100, grew 12.9% between 560 and 132 and 132 and 132 to 132 to 1 between 2019 and 2024.
“Middle salary only increases modestly, and CEO salaries do soar,” said Sarah Anderson, director of the Global Economic Program at the Institute of Policy Research.,,,,, and the author of the report.
Between 2019 and 2024, CEO compensation for these companies increased by 34.7% and did not adapt to inflation, while the average median worker wage for these companies increased by 16.3% during the same period, which is the lower inflation rate during the same period.
By last year, the average CEO compensation of $17.2 million was $17.2 million. The average worker salary is $35,570.
Among these 100 companies, the wages of median workers fell 22 times between 2019 and 2024. Ulta Beauty reports that the median wage for median workers has dropped to $11,078 as the company significantly expands its part-time workforce.
Starbucks CEO compensation is The biggest gap in 2024with its CEO Brian Niccol received a total compensation, worth $95.8 million, which is 66666 times the company’s median salary of $14,674.
“This is an amazing message Starbucks Management sent to workers who organized unions in 570 stores in recent years, still waiting for the company to negotiate contracts. This shows the people they really value in that company and who they don’t value. ” Anderson said.
Starbucks did not respond to multiple requests for comment on the report.
IPS report quotes June round table Administrative compensation disclosure requirements chaired by the U.S. market regulator, Drew Hambly, investment director at Calpers, the largest public pension fund in the U.S., describe Executives are overcompensated for the negative impact of low-wage labor.
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“I do want our board to think more about 50% of the people who work for them,” Hambly said. “Because when I work in a business, I might interact with low-paying workers. If you’re going to drive value over time, that’s what your company looks like.”
In recent years, American families have struggle Grocery and housing costs are high, layoffs rise. “In all of this, the CEO is focused on making himself richer than considering the benefits of his employees or even the long-term growth of the company,” Anderson said. “I think it would be a bad trend if they continue to go this path, not only for workers, but for these companies and the economy as a whole.”
From 2019 to 2024, 100 low-paying companies spent $64.4 billion on stock buybacks. More than half spends more on repurchases than on the company’s capital improvement.
Lowe’s share buyback cost $466.6 billion: The retailer’s 273,000 employees each cost $28,456. During this period, Home Depot ranked second in stock buybacks with spending of $37.9 billion.
The report also notes that 32 billionaires are attributed to low-paying 100 companies, including eight billionaires from Wal-Mart, four billionaires from Estee Lauder and three billionaires from Du’s.
As a policy solution, the report highlights support for companies that pay at least 50 times their employees to their CEO. It also urges policy makers to increase taxes on stock buybacks.
Ulta Beauty, Lowe and Home Depot did not respond to requests for comment.
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