CEOs at America’s 100 largest low-wage employers are paid 632 times more than the average worker, study finds

The main results

• CEO compensation for the payment of workers: From 2019 to 2024, the average salary of the executive director at 100 low-wage companies increased by 34.7 %, compared to only 16.3 % from the average medium worker salaries-less than inflation in the United States 22.6 % during the same period. The ordinary executive is now $ 17.2 million, while the model factor gets only 35,570 dollars per year. On 22 of these companies, the average nominal salaries decreased over six years.
• Expanding the payment gaps: The proportion of the executive manager to the worker disappeared by 12.9 %, from 560: 1 in 2019 to 632: 1 in 2024-more than twice the average S&P 500. Starbucks scored a new record with an amazing percentage 6666: 1 last year, reflecting CEO Brian Nicole with a value of 95.8 million dollars compared to $ 14674 for the medium employee.
• Restore shares on investment: These companies have spent $ 100 644 billion on shares resets between 2019 and 2024. The majority, 56 companies, have invested more in re -purchases compared to capital improvements in the long term, as Louis and the home warehouse led. Louis alone spent $ 46.6 billion – with an annual reward for $ 28456 per employee for six years.
• Wealth of billionaire: At least 32 American billionaires owe their wealth for these companies, with their net value combined 827 billion dollars.
• Political solutions and public support: The report shows many policy reforms to curb excessive executive salaries and re -purchases, including the taxes of high companies on huge wages gaps – a proposal supported by 80 % of potential voters in a 2024 survey. Other measures include enhancing the federal shares of re -purchase, restricting purchases for companies that accept government contracts or subsidies, linking the purchasing wage rates Federal.

Status studies: stark examples

• Starbucks: The average intermediate workers ’salaries increased by only 4.2 % in real terms over six years in the union engines. The company spent $ 18.2 billion on re -purchases, and outperformed capital investment. Nearly half of its qualified employees to obtain 401 (K) plans in 2023 did not have savings.
• Olta Beauty: Cosmetic retailers have witnessed that the average wage decreases by 46 % (to $ 11.078), as the workforce has turned into part -time employment. The CEO of 45 % – now 1,130 times the broker. Olta spent three times in re -purchases such as capital improvements.

The broader context

The gap is the executive director of the payment workers in the field of more than 100 degrees of wage. Among a wide sample of 50 public companies with revenues of more than one billion dollars, a study conducted by consultant partners in March 2025 found a wide division between the company’s actual performance and the CEO wages. The average income growth on an annual basis has collapsed from 3.7 % to 1.6 %, and the profit growth for the stock decreased from 0.3 to zero from 50 companies, but companies still issue bumper bonuses for their leaders. Fortune stated that the large reinforcements amounted to an average increase of 280 %, and the rewards were still 45 % in other companies.

Two prominent academics, Claudio Fernandez-Aruz and Greg Nagil, argued in the pages of luck in April that the data leads to insurance. In 1965, executive managers received 21 times more than the normal factor; By 2023, this percentage escalated to 290X. For 100 S&P 500, they noticed that this percentage increased to 603X in 2022. They found that the compensation of the CEO of large companies by 878 % from 1978 to 2022, while compensation for real workers only by 4.5 %.

It is part of a broader story of wealth, and certainly in the United States, where the congress Budget Office in late 2024 found that the 10 % of Americans have most of the origins, and 1 % above a third of a third of a third.

There is a little “ideal storm” in the priority of shareholders, the re -purchases of shares, and the decrease in companies’ tax rates that “have become larger, increase the strength of companies, and the benefits they achieved in a profit in October 2024.

The legislative procedure

The IPS report informs the entire set of reforms on the legislative agenda in Congress and in cities such as Portland and San Francisco. The proposals range from taxes and contract restrictions in relation to pushing excessive gaps for workers in the executive director to enhance accountability council, the transparency of companies, and shareholders. Several measures have been drawn up with strong parties as well as public support.

Ultimately, the Political Studies Institute warns that without decisive reform, the largest companies in America will regret it. The report was martyred Dro Hamli, the director of investment in the largest fund between Benson General in the country, warning of the harmful effects of this defect at a SEC round table on executive compensation. He said that Calmer’s research finds high levels of workers ‘disturbances in low -wage companies, as the average workers’ salaries have been flat or decreased over the past five years. “I want companies to think of more than 50 % of the people who work for them,” he told the round table. “Because when I go to business, I may interact with a low -wage worker. If you will lead the value over time, this is the face of your company.”

Starbucks, Witt Waltaouti did not respond to the suspension requests.

For this story, luck The artificial intelligence is used to help with a preliminary draft. Check an editor of the accuracy of the information before publishing.