CEO pay surges 50% since 2019— workers' wages increase 1%
What's the story
A recent Oxfam report has highlighted the jarring difference between CEO pay and worker wages globally. The study calls the inequality a "grotesque spectacle."
It shows that the average CEO salary in India is now $2 million/year, while globally, CEO earnings have risen by 50% in real terms since 2019.
In stark contrast, worker wages have only grown meagerly by 0.9% in the same period.
Wealth disparity
Billionaires' earnings surpass average workers' annual income
The Oxfam report emphasizes that billionaires now earn more in a single hour than what most workers make in an entire year.
Countries such as Ireland and Germany lead the trend with average CEO salaries of $6.7 million and $4.7 million, respectively.
The report notes that this marks a 50% real-term increase from a previous figure of $2.9 million in 2019 (adjusted for inflation), though this figure refers to a specific context rather than the global average CEO salary.
Systemic issue
Oxfam's Executive Director comments on the disparity
Commenting on the report's findings, Oxfam International Executive Director Amitabh Behar said, "Year after year, we see the same grotesque spectacle: CEO pay explodes while workers' wages barely budge."
Behar added that this isn't a glitch in the system but "the system working exactly as designed," funneling wealth upwards while millions struggle to afford basic necessities.
Gender disparity
Gender pay gap narrows but women still unpaid on Fridays
The Oxfam report also highlights a slight progress in closing the global gender pay gap.
Among 11,366 companies across 82 countries, the average gap reduced from 27% to 22% between 2022 and 2023.
The report notes that women in these corporations essentially work for free on Fridays while their male counterparts are paid for the entire week.
Call for action
Oxfam urges corporations to be more accountable
The report also warns that new US tariffs, especially under Donald Trump's trade policies, could worsen global inequality.
These measures could result in job losses, higher prices for essential goods, and deepen poverty in low-income countries.
In light of this growing inequality, Oxfam is calling on corporations to be more accountable by improving transparency in wage reporting and addressing gender pay gaps.