Largest pay increase since financial crisis
LANSING – According to the AFL-CIO’s annual Executive PayWatch report, Michigan S&P 500 CEOs made an average of $14,296,525 in 2014 – 339 times more than the average Michigan worker, who earns $42,162 per year. The report also reveals that Michigan CEOs made 843 times more than minimum wage workers.
The Executive PayWatch report – the most comprehensive searchable online database which tracks CEO pay at S&P 500 companies – showed that nationally in 2014, the average worker earned approximately $36,000 per year, while CEO pay averaged $13.5 million per year – a ratio which has grown to 373-to-1.
“This report makes it pretty clear that corporate CEOs are doing better than ever, while Michigan’s working families are struggling to get by,” said Karla Swift, President of the Michigan AFL-CIO. “Giving huge tax breaks to companies that send jobs overseas has stacked the deck against Michigan workers. This just underscores why collective bargaining is so important, because it gives working men and women a voice at the bargaining table, where they can negotiate for fair wages and benefits. It’s time to address income inequality by adding more transparency to CEO pay, and requiring companies to publicly disclose CEO to median employee pay ratios.”
Mega-retailer Walmart, highlighted in this year’s PayWatch, represents one of the most egregious examples of CEO-to-worker pay inequality. CEO Douglas McMillon earns $9,323 an hour, compared to $9 for a beginning employee salary. A new employee would have to work for 1036 hours just to equal the pay McMillon earns in one hour. PayWatch also highlights the wealth of the six Walton family members who have more wealth than 43 percent of America’s families combined.
More information about Walmart’s massive CEO-to-worker pay disparity and inequality among S&P 500 companies can be found at www.paywatch.org.
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