The median worker at Amazon has to work 59 hours to equal what CEO Jeff Bezos is paid for one hour of work. Photo: Reuters
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How well paid are CEOs at Amazon, McDonald’s and 13 other top US brands compared to the typical worker?
Twitter, Alphabet and Amazon have the most equitable deal when their CEO’s salary is compared to that of the median employee
Amazon paid its CEO Jeff Bezos US$1.68 million in 2017, 59 times the salary of its median worker. Photo: Bloomberg
CEOs made 20 times their median employee’s salary in 1965. As of 2017, at America’s largest companies, that multiple has jumped up to a shocking 312.
At many companies, the CEO-to-worker compensation ratio is even higher. The CEO of McDonald’s earned 3,101 times the median worker in 2017 (US$21,761,052 versus US$7,017). That is partially because McDonald’s employs workers all over the world, where the cost of living is often lower than the US.
Another reason for the jump in CEO compensation is a new perspective on how company earnings should be distributed. For the past few decades, as The New York Times reported, most corporate profits have been going to corporate investors and chief executives, whose compensation is often based on stocks, or foreign mergers and acquisitions.
Meanwhile, proposals to raise worker compensation faced resistance from major shareholders. When American Airlines announced last year they would be giving raises to pilots and flight attendants, the company’s stock tanked by 5.2 per cent in one day.
In 2018, the public finally got to understand just how much more CEOs are paid than their workers. The Dodd-Frank Act of 2010 requires, among other provisions, companies to disclose their company’s CEO-to-worker compensation ratio. That part of the law came into effect this year.
Here are 15 major employers and how their CEO’s salary compares to their global median employee, ranked from the smallest difference to the biggest:
Twitter: CEO earned 0 times the median worker
Number of employees: 3,372
CEO compensation: US$0
Median worker compensation: US$161,860
Alphabet: CEO earned 0.000005 times the median worker
Number of employees: 80,110
CEO compensation: US$1
Median worker compensation: US$197,274
Amazon: CEO earned 59 times the median worker
Number of employees: 566,000
CEO compensation: US$1,681,840
Median worker compensation: US$28,446
Kraft Heinz: CEO earned 91 times the median worker
Number of employees: 39,000
CEO compensation: US$4,194,179
Median worker compensation: US$46,006
Netflix: CEO earned 133 times the median worker
Netflix paid CEO Reed Hastings US$24 million in 2017. Photo: AFP
Number of employees: 4,855
CEO compensation: US$24,377,499
Median worker compensation: US$183,304
Microsoft: CEO earned 154 times the median worker
Microsoft paid CEO Satya Nadella US$25 million in 2017. Photo: AP
Number of employees: 131,000
CEO compensation: US$25,843,263
Median worker compensation: US$167,689
Intel: CEO earned 211 times the median worker
Intel paid CEO Sergio Perez US$21 million in 2017. Photo: Reuters
Number of employees: 102,700
CEO compensation: US$21,544,700
Median worker compensation: US$102,100
Caterpillar: CEO earned 213 times the median worker
Caterpillar paid its CEO US$14 million in 2017. Photo: Reuters
Number of employees: 98,400
CEO compensation: US$14,035,209
Median worker compensation: US$65,770
JPMorgan Chase: CEO earned 364 times the median worker
JPMorgan Chase paid its CEO US$28 million in 2017. Photo: AP
Number of employees: 252,539
CEO compensation: US$28,320,175
Median worker compensation: US$77,799
Johnson & Johnson: CEO earned 452 times the median worker
Johnson & Johnson paid its CEO US$29 million in 2017. Photo: Reuters
Number of employees: 134,000
CEO compensation: US$29,802,564
Median worker compensation: US$66,000
Marathon Petroleum: CEO earned 935 times the median worker
Marathon Petroleum paid its CEO US$19 million in 2017. Photo: Ron Cogswell/flickr
Number of employees: 44,000
CEO compensation: US$19,670,807
Median worker compensation (including part-time retail associates): US$21,034
Skechers: CEO earned 1,512 times the median worker
Skechers paid its CEO US$7 million in 2017. Photo: Reuters
Number of employees: 24,599
CEO compensation: US$7,773,992
Median worker compensation (including part-time retail associates): US$5,140
Estée Lauder: CEO earned 1,690 times the median worker
Estée Lauder paid its CEO US$48 million in 2017. Photo: AP
Number of employees: 77,600
CEO compensation: US$48,753,819
Median worker compensation: US$28,845
The median worker at Estée Lauder is a retail associate living outside the United States.
McDonald’s: CEO earned 3,101 times the median worker
McDonald’s CEO was paid US$21 million in 2017. Photo: Jonathan Wong
Number of employees: 235,000
CEO compensation: US$21,761,052
Median worker compensation: US$7,017
The median worker at McDonald’s is a part-time restaurant crew employee in Poland.
Mattel: CEO earned 4,987 times the median worker
Mattel paid its CEO US$31 million in 2017. Photo: AP
Number of employees: 35,280
CEO compensation: US$31,275,289
Median worker compensation: US$6,271
The median worker at Mattel works at the company's Malaysian manufacturing facility, where “pay and wage rates are dramatically lower”.
This article originally appeared on Business Insider .