<mediadc-video-embed data-state="{"cms.site.owner":{"_ref":"00000161-3486-d333-a9e9-76c6fbf30000","_type":"00000161-3461-dd66-ab67-fd6b93390000"},"cms.content.publishDate":1654612871648,"cms.content.publishUser":{"_ref":"0000017c-2d8e-d3f3-a7fc-7ffef6720000","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"cms.content.updateDate":1654612871648,"cms.content.updateUser":{"_ref":"0000017c-2d8e-d3f3-a7fc-7ffef6720000","_type":"00000161-3461-dd66-ab67-fd6b933a0007"},"rawHtml":"
var _bp = _bp||[]; _bp.push({ "div": "Brid_54612762", "obj": {"id":"27789","width":"16","height":"9","video":"1025363"} }); ","_id":"00000181-3e9c-dedf-ad93-bfffc3ac0000","_type":"2f5a8339-a89a-3738-9cd2-3ddf0c8da574"}”>Video EmbedData 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.
JOE BIDEN’S HEARTLESS MESSAGE ON INFLATION
Median wages also struggled to keep up with inflation. The median worker failed to keep up with the average 4.7% inflation of 2021 at 106 of the 300 firms surveyed, according to IPS.
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.
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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 average CEO-worker pay ratio for the companies surveyed with federal contracts was slightly smaller than the average, around 571-to-1.
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.
