CEO pay and stock buybacks have soared at the 100 largest low-wage corporations
3 days ago
- #income inequality
- #economic policy
- #corporate governance
- CEO pay at Low-Wage 100 firms increased by 34.7% from 2019 to 2024, while median worker pay lagged behind inflation at 16.3%.
- The average CEO-worker pay ratio widened from 560:1 in 2019 to 632:1 in 2024.
- Starbucks had the widest pay gap at 6,666:1, with the CEO earning $95.8 million in 2024.
- Ulta Beauty reported the steepest drop in median pay, falling 46% to $11,078.
- Low-Wage 100 companies spent $644 billion on stock buybacks from 2019 to 2024, prioritizing short-term gains over worker wages and long-term investments.
- Lowe's and Home Depot led in stock buybacks, spending $46.6 billion and $37.9 billion respectively.
- 56 out of 100 firms spent more on buybacks than capital expenditures.
- At least 32 billionaires owe their wealth to Low-Wage 100 companies, with Walmart, Estee Lauder, and others spawning multiple billionaires.
- Policy recommendations include taxing extreme CEO-worker pay gaps, increasing the buybacks tax, and leveraging federal contracts to discourage wide pay disparities.
- Proposed bills like the CEO Act and Tax Excessive CEO Pay Act aim to generate revenue and incentivize fairer pay practices.