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CEOs of the S&P 500 last year garnered a total compensation of $ 18.3 million on average, making 324 times the average wage of their company, while benefiting from wage increases that far outpaced inflation, according to a new report from the largest union Federica of America.
The American Federation of Labor and the Confederation of Industrial Organizations (AFL-CIO), representing 12.5 million workers, used the report to highlight the gaping gap between those occupying America’s C suites and ordinary workers working in warehouses, shops, restaurants and factories that maintain the economy Buzz – a gap that has probably been exacerbated by inflation.In fact, the value of the federal minimum wage is at its lowest point since 1956, according to the Left-leaning Economic Policy Institute.
Although some executives said workers ‘wages were partly to blame for rising prices, workers’ real wages fell 2.4 percent last year after adjusting for inflation, the AFL-CIO report noted. CEO wages, meanwhile, grew 18.2% in 2021.
“Last year, the CEO’s average salary ratio per employee of the S&P 500 was 324 per 1. By 2020, it was 299 to 1. And in 2019, he was 264 to 1, “AFL-CIO Secretary-General Fred Redmond said in ready-made comments.
“So to put a good point on this, during the epidemic, the ratio of CEOs to employees jumped by 23%,” Redmond added. Record profits from rising prices and cause a recession that will take the working people out of our jobs. ”
The largest salary ratios between CEO and employee were in companies including Amazon AMZN, + 3.91%, Expedia EXPE, + 6.40%, McDonald’s MCD, + 1.62%, and The TJX Companies TJX, + 3.57%, according to the report. The CEO’s salary ratio of 6,474 to 1 was at the top of the S&P 500 SPX, + 2.76% of the companies, with the median employee earning $ 32,855 while CEO Andy Jesse receiving a total compensation of $ 212.7 million.
As previously reported by MarketWatch, Jassy’s total remuneration for 2021 included a base salary of $ 175,000, in addition to $ 200 million plus in stock grants. These stock prices, which will represent a significant portion of its reward in the coming years, are expected to be extracted over the next decade.
“The way SEC laws work, we are required to report this grant as comprehensive compensation for 2021, when in practice it will be granted over the next 10 years,” an Amazon spokesman said in a statement. “What it’s worth in terms of annual remuneration is competitive with that of CEOs at other large companies and approved by Amazon’s board. As noted in the power of attorney, this award is intended to represent the majority of Andy’s reward for the coming years. ”
Peter Kern, CEO of Expedia Group, was the highest-paid CEO in the S&P 500 last year, according to the AFL-CIO report, with compensation of $ 296.2 million. However, the fund’s remuneration for 2021 consisted mostly of long-term incentive prizes of capital that would not be distributed only between 2024 and 2026 at the earliest, an Expedia spokesman said.
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A TJX spokesman said the company’s payroll estimate included about 340,000 employees from its 4,700 retail stores in nine countries, adding: “The median employee for the purposes of estimating our payroll ratio was an hourly retail store colleague.” TJX strives to “provide reward at all levels and in all functions which is both competitive in the market and equal in all of our workforce,” the spokesman said.
“Our approach to executive remuneration is based on core objectives that include financial performance reward and long-term business success motivation, and our CEO’s reward reflects TJX’s strong performance in fiscal 2022, as well as our CEO’s decades of outside industry pricing expertise. “Responsibility for leading a complex global business of $ 48.5 billion in a dynamic retail environment,” the spokesman said.
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