Report: Average CEO Makes More in a Day than Worker in a Year

WASHINGTON–The average CEO of a public U.S. corporation makes more in a day than an average worker does in a year, according to AFL-CIO’s Executive Paywatch report and website.

The  annual study found that average CEO of the 472 publicly traded corporations on the Fortune 500 garnered $13.5 million in pay and perks in 2014, 373 times the average pay last year for a worker, of $36,134. While an average worker saw pay rise by 2.2 percent last year, the average CEO got a 16 percent pay raise, not counting options.

 

Wal-Mart paid its average beginning worker $9 an hour, and paid its CEO, Douglas McMillon, $9,323 an hour, or more than $19 million.  But McMillon didn’t even make the top 100 on the CEO pay list, the fed’s data, from federal filings, show.

 

“America faces an income inequality crisis because corporate CEOs have taken the raising wages agenda and applied it only to themselves,” said AFL-CIO President Richard Trumka. “Big corporations spend freely on executive perks and powerful lobbyists to strip rights from workers, but when it comes to lifting up the wages of workers that make their companies run, they’re nowhere to be found.

 

McDonald’s CEO Donald Thompson made $7.29 million last year.  He recently announced increases in wages and hours for minimum-wage workers in company-owned restaurants, not in franchised restaurants.  McDonald’s owns only 10 percent of its eateries.

 

Tobacco firms had the highest average for their CEOs, topping $13 million each last year, Paywatch reports. Railroad ($12.53 million) and oil company CEOs ($12.05 million) were not far behind.  The oil firms’ CEO pay is in contrast with the companies’ refusal, until they forced their unionized Steelworkers to strike over the issue, to spend more money to improve refinery safety.  The top-paid oil CEO was R.W. Tillerson of ExxonMobil ($33.1 million).

Source: PAI