A CEO Earned On Average Almost 300 Times More Than A Worker

A CEO Earned On Average Almost 300 Times More Than A Worker

In the early moments of the pandemic, when all was uncertainty and bewilderment, many feared for their jobs. In order not to go to such an extreme, the ERTEs were applied and the CEOs of many companies announced a reduction in their salaries to be able to face the crisis that would come, in addition to being a sign of commitment to their employees. Despite this, the salary of the CEO of an S&P 500 company in 2020 averaged almost 300 times that of a worker , according to the latest study by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO, for its acronym in English).

These data, added to those collected in previous years, show that the salary gap between the CEOs of the S&P 500 and their workers continues to widen. As the study highlights, CEOs of major companies made about $ 260 billion each year for the past decade. Thus, while workers saw their salary increase by less than $ 10,000 during that period, that of CEOs increased by more than $ 2.6 million .

Never seen before: US companies need ten million workers they cannot find
Never seen before: US companies need ten million workers they cannot find

A compensation to which, in addition, we must add the compensation received in 2020. According to the AFL-CIO data, the CEOs of the S&P 500 companies received an average compensation of $ 712,720 last year .

It is in the consumer discretionary sector , which includes companies such as Amazon, Starbucks or McDonald’s, where a greater wage gap is perceived. Specifically, the difference between the average salary of CEOs and workers was 741 to 1.

Change of trend
However, this trend may have changed this year as a result of the labor crisis that several countries are experiencing, including the United States and the United Kingdom.

In the case of the United States, some companies are having difficulty filling their vacancies because many workers are not willing to work for the salary before the Covid crisis or have other preferences . This translated into a historic number of vacancies in July, reaching over 10 million . In turn, this is causing wages to go up, including lower ones.

As for the job market in the United Kingdom, a pitched battle has been unleashed to fill the vacant positions left by foreigners who left the country as a result of Brexit and the reactivation of the economy after the pandemic. Faced with this situation, companies are offering better conditions , which are usually accompanied by higher salaries.

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