Tag: CEO Pay Ratios

These CEOs Make 1,000 Times More Than Their Employees

Income inequality is a growing problem in the United States. In cities across the country, the rich are getting richer while the poor are getting poorer. Perhaps nowhere is the problem more apparent than in the corporate world. In some of the largest and most recognizable global companies, chief executives earn in less than an hour as much as their typical employee earns in an entire year.

MyLogIQ, a data aggregator of public companies, recently released a report comparing total CEO compensation to median employee compensation for companies on the S&P 500 index. 24/7 Wall St. reviewed the report to identify the 13 companies where the CEO makes at least 1,000 times the salary of their typical employee.

These immense differences in compensation between CEOs and their typical employees in some cases are the product of extremely high CEO compensation – over $100 million in one case. More often, however, it is a combination of large CEO pay (the lowest is $8.8 million) and very low median employee annual pay, as many of these companies employ part-time or seasonal workers. Indeed, some of these companies rank among those that owe their employees a raise.

These CEOs Make 1,000 Times More Than Their Employees

The typical employee of The Gap, Inc., the company behind Old Navy, Banana Republic, and Gap clothing brands, earns just under $6,000 a year. Arthur Peck, the company’s CEO, earns as much in about a half hour. While most Gap employees are compensated primarily through wages and salaries, Peck is an exception. Only $1.5 million… Continue reading These CEOs Make 1,000 Times More Than Their Employees

From Coke to Macy’s, Pay for Typical Worker Takes Big Swings

As U.S. companies disclose what they pay typical workers, one thing is clear: A lot can change in a year.

Jefferies Financial Group Inc. almost tripled what it paid its median employee last year. Median pay rose by nearly 60% at Macy’s Inc. and by almost a quarter at biotech Celgene Corp. It fell by two-thirds at Coca-Cola Co. and by more than a quarter at snack-maker Mondelez International Inc.

The reasons for these big swings from 2017 to 2018 varied widely, however. Some reflected dramatic shifts in the company’s workforce. Others came about thanks to new ways of identifying that middle employee. Still others reflect actual changes in what individual workers made.