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7h ago

CEO-to-Worker Pay Gap Hits 632:1 at Lowest-Paying S&P 500 Firms, IPS Report Finds

The IPS analysis links the widening gap to heavy stock buybacks, prompting fresh calls for taxes on outsized pay and tighter limits on repurchases.

There's a widening gap at the biggest low-wage companies.
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Overview

  • Average CEO compensation at the Low-Wage 100 reached $17.2 million in 2024, while the typical worker earned $35,570, reflecting CEO pay up 34.7% since 2019 versus 16.3% for median worker pay.
  • The group’s average CEO-to-worker ratio climbed from 560:1 in 2019 to 632:1 in 2024, with worker pay growth lagging cumulative U.S. inflation of 22.6% over the period.
  • Starbucks recorded the widest gap at 6,666:1 in 2024, as CEO Brian Niccol received $95.8 million against a $14,674 median employee pay.
  • Low-Wage 100 companies spent $644 billion on stock buybacks from 2019 to 2024, with 56 firms allocating more to repurchases than capital improvements, including $46.6 billion at Lowe’s.
  • IPS highlights falling median pay at 22 companies, including a 46% drop at Ulta to $11,078, and notes investor and regulatory attention such as CalPERS’ concerns flagged at an SEC roundtable.