Detailing the widening gap between outrageously high CEO compensation and the median wages of employees at some of the world's largest and most profitable companies, a progressive think tank on Thursday warned executives will continue to enrich themselves at the expense of their lowest-paid workers unless policies are adopted to curb such corporate greed.
"Across the political spectrum, Americans are fed up with overpaid CEOs," said Sarah Anderson, program director at the Institute for Policy Studies (IPS) and author of a new report out Thursday. "Policymakers should take long overdue action to push Corporate America in a more equitable direction."
The report, Executive Excess 2025, finds that absent federal policies forcing corporations to rein in their spending on stock buybacks and exorbitant CEO pay packages, the average CEO-to-worker pay gap widened by 12.9% last year at what IPS calls the "Low-Wage 100"—the 100 S&P 500 companies with the lowest median worker pay.
The average gap between executive and worker pay now stands at 632-to-1 at these firms, up from 560-to-1 in 2023.
Between 2019-24, the average CEO at a Low-Wage 100 company saw their pay rise 34.7%, unadjusted for inflation, while the average median worker pay rose just 16.3%.
CEO compensation increased by 22.6% over the time period, far outpacing inflation. Meanwhile, wage hikes by these same companies didn't even match inflation, including for warehouse workers at software company Aptiv, where the CEO-to-worker pay gap was 2,072-to-1 last year, or cashiers at Ross Stores, where the gap was 1,770-to-1.
"We can curb this runaway source of inequality by taxing corporate greed."
Aptiv CEO Kevin Clark was paid $18.8 million last year while the median worker at the firm made just $9,052. Ross Stores' pay ratio was similar, with CEO Barbara Rentler taking home $17 million compared to the company's median worker, who made just $9,602.
Starbucks, which has made headlines in recent years both for its store employees' fight to unionize across the United States and for its executives' illegal union-busting tactics, had far-and-away the largest gap between CEO and median worker pay in 2024, with CEO Brian Niccol taking home $95.8 million and the median employee earning just $14,674.
That makes the wage gap 6,666-to-1 at the coffee chain.
A petition organized last year by Starbucks Workers United, which has unionized at hundreds of stores since a landmark victory in Buffalo, New York in 2021, warned Niccol that the cost of living across the US "is skyrocketing while you continue to make millions" and the employees "who actually make your Starbucks run can't make ends meet."
