It’s good to be a CEO, at least paywise. According to the 2014 AFL-CIO Executive PayWatch, released today, it’s 331 times better to be a CEO than an average worker. PayWatch finds that the average CEO of an S&P 500 company pocketed $11.7 million in 2013, while the average worker earned $35,293. The gap between CEOs and minimum wage workers is more than twice as wide—774 times.
AFL-CIO President Richard Trumka said that PayWatch:
“Calls attention to the insane level of compensation for CEOs, while the workers who create those corporate profits struggle for enough money to take care of the basics.”
While CEO pay has hit stratospheric levels, workers and their families have been left in an economic quagmire of stagnant wages, expiration of unemployment insurance for long-term jobless workers, an abysmally low minimum wage and unequal pay between men and women.
Many of the CEOs highlighted in PayWatch head companies, such as Walmart, that are notorious for paying low wages. This year PayWatch highlights five low-wage companies through stories from workers at Walmart, Kellogg’s, Reynolds American , Darden Restaurants and T-Mobile.
For example, in fiscal 2013, Walmart CEO Michael T. Duke received $20,693,545 in total compensation. PayWatch points out that a minimum wage worker at Walmart would have had to work 1,372 hours just to earn what Duke made in an hour. Tiffany, a Walmart worker and mother of two in Maryland, said:
“I earned about $12,000 last year as a full-time employee. These poverty wages force my family to receive public assistance. Currently, we are enrolled in the public health care program for low-income families, and the Women, Infants and Children program for my infant daughter.”
And while many of these companies argue that they can’t afford to raise wages, the nation’s largest companies are earning higher profits per employee than they did five years ago. In 2013, S&P 500 companies earned $41,249 in profits per employee, a 38% increase. Said Trumka:
“These companies are run by shortsighted business leaders, because people who earn minimum wage, for instance, can’t afford cellphones from T-Mobile or dinner at Red Lobster or the Olive Garden, both of which are owned by Darden Restaurants. America’s CEOs—as exemplified by the individuals of these companies—are cannibalizing their own consumer base. It’s wrong. It’s unfair, and it’s bad economics.”
PayWatch is the most comprehensive searchable online database tracking the excessive pay of CEOs of the nation’s largest companies. The website offers visitors the ability to compare their own pay to the pay of top executives, highlights the 100 top-paid CEOs, and breaks out CEO pay data by state and by industry.
The site also tracks and grades votes cast by 78 of the largest mutual-fund families on executive compensation at the public companies they invest in. Mutual funds own more than one-fifth of all shares in U.S. public companies, giving them a great deal of influence in determining executive pay at these companies.
PayWatch also gives you a chance to help the nation’s lowest-paid workers by signing a petition urging Congress to pass the Fair Minimum Wage Act of 2013. It would provide a much-needed increase to $10.10 an hour, raise the tipped minimum wage for the first time in more than 20 years and help lift more than half of the nation’s working poor out of poverty.
Sign the petition to raise the minimum wage.