Connect with us

Hi, what are you looking for?

Online Business Success

CEO-Worker Pay Gap Widens—And Employees Aren’t Happy About It

If you thought the pandemic might have made a dent in the wealth gap between CEOs and rank and file workers, you’d be wrong. In fact, average CEO pay increased 31% over the last three years while median pay rose 11%.

That’s according to recent rankings of compensation from JUST Capital, a nonprofit that ranks large publicly traded companies on their performance in such issues as governance and labor policies.

With those findings in mind, the organization set out to explore American’s views of CEO pay. The bottom line: Most Americans say that the growing CEO-worker pay gap is a problem.

“People, regardless of ideology, see that CEO pay is too high,” says Alison Omens, chief strategy officer at JUST Capital.

Disparities Grow

Certainly, Just Capital’s latest rankings of large companies found that the pandemic did nothing to stem the increase in CEO compensation. In fact, the average CEO-to-median -worker pay ratio as of 2020 is 235:1, up from 212:1 three years before.

Advertisement. Scroll to continue reading.

The other side of the coin: an April report from Brookings that surveyed 22 companies employing more than 7 million frontline workers. It found that only one-third pay at least half their employees a living wage. Company shareholders were rewarded five times more than workers.

Mind the Gap

In February, researchers at polling company SSRS, which conducted the survey, interviewed over 1,000 U.S. adults to investigate their opinions about the state of CEO compensation, what companies should be doing about the CEO-worker pay gap and whether they think workers are undervalued by companies.

Some findings:

· Almost nine in 10 (87%) agree that the growing gap between CEO pay and worker pay is a problem in this country.

· 72% say that companies should have CEO compensation caps, regardless of performance.

· 85% agree that one way America’s largest companies can meaningfully act to reduce income inequality is by raising their minimum wage to a living wage.

· 81% believe large corporations are responsible for ensuring the basic financial security of their lowest-paid workers.

· 80% say the recent wave of worker strikes and support for labor unions are seeking to address the fact that large corporations have undervalued employees for too long.

“Pay levels are an indicator for people of how a CEO is treated vs. how workers are treated in a company,” says Omens.

Advertisement. Scroll to continue reading.

The survey also revealed that Americans are pretty well-informed about the current state of CEO pay. Researchers questioned a control group, which didn’t see any statistics beforehand, and another group that did. On the whole, responses were similar. Among the former, 73% said that most CEOs of America’s largest companies are compensated too much vs. 13% who responded they are paid the “right amount.” Among the latter, 79% felt the pay level is excessive vs. 10% who said they receive an acceptable sum.


Source link

Click to comment

Leave a Reply


Online Business Success

Finance Minsiter Miftah Ismail delivers the budget widening speech in the National Assembly on June 24, 2022. Screengrab Govt withdraws tax relief to salaried...

Top Stories

Bitcoin hit a 2022 low at $17,580 on June 18 and many traders are hopeful that this was the bottom, but (BTC) has been...

Top Stories

Chainalysis head of international policy Caroline Malcolm expects Australia’s new rules governing crypto advertising, promotion and consumer safeguards to follow a similar path to...

Top Stories

A YouTuber started traveling the world to see whether he could survive solely on Bitcoin as a means of payment. In the latest episode...


GamesBeat’s Rachel Kaser is furious about the Supreme Court’s failure to protect her rights and freedom. What’s the games industry gonna do?Read More

Top Stories

Ethereum’s native token, Ether (ETH), gained alongside riskier assets as investors assessed weak U.S. economic data and its potential to cool down rate hike...


You May Also Like


Introductions get a lot of attention. I’ve explored the topic of how to write them even though as a reader, I always skip them....

Online Business Success

The internet is now our nervous system. We are constantly streaming and buying and watching and liking, our brains locked into the global information...

SEO Guide

There are all kinds of pictures of the world on the internet, but to find one of these specific pictures that you want to...

Online Business Success

You can think of link building in many ways. I like to call it tedious, painful, and a test of patience. It’s also necessary...