ALBANY, N.Y. (NEWS10) – There has always been a large wage gap between company CEOs and the average wage earner. The best illustration of this is the growth rate in each, which the pandemic has worked to exacerbate.
To look into the disparity, Business.org and Andrew Mosteller dug into the numbers in a new report.
Key findings of the report:
- The top three companies with the largest wage inequality are Nike, Amazon, and Walmart.
- The three companies with the least amount of wage inequality are Berkshire Hathaway, Alphabet (Google’s parent company), and Walt Disney.
- The average CEO earns $21.45 million dollars a year. That’s 400 times more than what an average employee earns ($51,394).
Not making the argument that the average employee should be paid more than the CEO, Mosteller stressed the job of the latter being extremely important to a company’s success. However, he says “businesses that pay CEOs exorbitant salaries risk perpetuating the old adage of making the rich richer while giving everyone else mere scraps for a living.”
The first step to success, according to the report, is to recognize when companies have a flawed wage structure. Then, social pressure must be introduced to slash CEO compensation and raise general working wages. If businesses want to attract talent at all levels of their company, competitive wages are a must.