Data reveal that business executives still see significant increases in earnings, while workers are struggling to keep up with rising inflation.
The gap between executives and workers has continued to grow, according to a sample of 300 firms by the left-leaning Institute for Policy Studies released on Tuesday. Many of these companies have failed to provide sufficient raises to the median worker to account for increasing prices and other economic demands. Meanwhile, executives have reported significant increases in their personal wealth over that same period.
"CEOs' pandemic greed grab has sparked outrage among Americans across the political spectrum," report author Sarah Anderson wrote. The gap between CEOs and median workers grew from 604-to-1 in 2020 to 670-to-1 in 2021, according to IPS. That increase is due to a $2.5 million increase in CEO pay year over year.Median wages also struggled to keep up with inflation. The median worker failed to keep up with the average 4.
For example, hardware chain Lowe's spent $13 billion on share repurchases, a practice often used to inflate executive stock-based pay. At the same time, the company's median pay dropped 7.6% to $22,697. Other companies have even more significant gaps between their workers and leaders. Amazon's recently appointed CEO, Andy Jassy, made $212.7 million in 2021, which is 6,474 times the average Amazon worker's wage of $32,855, according to IPS.The gap is not much better for those who work under federal contracts. Of the 300 firms surveyed by IPS, 119 received federal contracts between Oct. 1, 2019, and May 1, 2022, and were valued at around $3.7 billion.
The report recommended that President Joe Biden use executive actions to"give corporations with narrower pay ratios preferential treatment in government contracting," make companies with larger CEO-worker pay ratios pay more taxes, and put restrictions on stock buybacks.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Black-white wealth gap getting worse, 160 years of US data showThe gap between the wealth of Black and white Americans is on track to widen substantially, exacerbated by the pandemic, according to new data.
Read more »
Black-white wealth gap getting worse, 160 years of US data showThe gap between the wealth of Black and white Americans is on track to widen substantially, exacerbated by the pandemic, according to new data.
Read more »
America's glaring 54-point gap on financial well-beingHigh gas prices, stock market volatility and inflation are hiding the reality that the economy is working for a huge swath of Americans — and has richly bolstered their nest eggs.
Read more »
Nurse practitioners want bigger role to fill Sask. primary care gapNPs say they can help fill a growing need for primary care in major urban centres, but the jobs just aren\u0027t there.
Read more »
Close the Loopholes in the American Data Privacy & Protection ActA bipartisan federal data privacy bill would be a step up from the nearly nonexistent protection of Americans' information were it not for such large loopholes.
Read more »
A Long-Awaited Defense Against Data Leaks May Have Just ArrivedAfter years of data breaches, leaks, and hacks leaving the world desperate for tools to stem the illicit flow of sensitive personal data, a key advance has appeared on the horizon.
Read more »