- In 2016, the average CEOs in America’s largest companies earned 271 times more than their typical worker, according to a report by the Economic Policy Institute.
- Business Insider looked at reports by 15 major companies to see how much more they pay their CEOs than their typical worker.
- The CEO of McDonald’s earned 3,101 times the average worker’s salary in 2017.
CEOs made 20 times their median employee’s salary in 1965. Now, at America’s largest companies, that multiple has jumped up to a shocking 271.
And, 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 ($21,761,052 versus $7,017). That’s partially because McDonald’s employs workers all over the world, where the cost of living is often lower than the US.
But 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, the majority of 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 up worker compensation are met with 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% 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 average worker
Number of employees: 3,372
CEO compensation: $0
Median worker compensation: $161,860
Read Twitter's executive compensation report here
Alphabet: CEO earned 0.000005 times the average worker
Number of employees: 80,110
CEO compensation: $1
Median worker compensation: $197,274
Read Alphabet's executive compensation report here
Amazon: CEO earned 59 times the average worker
Number of employees: 566,000
CEO compensation: $1,681,840
Median worker compensation: $28,446
Read Amazon's executive compensation report here
Kraft Heinz: CEO earned 91 times the average worker
Number of employees: 39,000
CEO compensation: $4,194,179
Median worker compensation: $46,006
Read Kraft Heinz's executive compensation report here
Netflix: CEO earned 133 times the average worker
Number of employees: 4,855
CEO compensation: $24,377,499
Median worker compensation: $183,304
Read Netflix's executive compensation report here
Microsoft: CEO earned 154 times the average worker
Number of employees: 131,000
CEO compensation: $25,843,263
Median worker compensation: $167,689
Read Microsoft's executive compensation report here
Intel: CEO earned 211 times the average worker
Number of employees: 102,700
CEO compensation: $21,544,700
Median worker compensation: $102,100
Read Intel's executive compensation report here
Caterpillar: CEO earned 213 times the average worker
Number of employees: 98,400
CEO compensation: $14,035,209
Median worker compensation: $65,770
Read Caterpillar's executive compensation report here
JPMorgan Chase: CEO earned 364 times the average worker
Number of employees: 252,539
CEO compensation: $28,320,175
Median worker compensation: $77,799
Read JPMorgan Chase's executive compensation report here
Johnson & Johnson: CEO earned 452 times the average worker
Number of employees: 134,000
CEO compensation: $29,802,564
Median worker compensation: $66,000
Read Johnson & Johnson's executive compensation report here
Marathon Petroleum: CEO earned 935 times the average worker
Number of employees: 44,000
CEO compensation: $19,670,807
Median worker compensation (including part-time retail associates): $21,034
Read Marathon's executive compensation report here
Skechers: CEO earned 1,512 times the average worker
Number of employees: 24,599
CEO compensation: $7,773,992
Median worker compensation (including part-time retail associates): $5,140
Read Skechers' executive compensation report here
Estée Lauder: CEO earned 1,690 times the average worker
Number of employees: 77,600
CEO compensation: $48,753,819
Median worker compensation: $28,845
The median worker at Estée Lauder is a retail associate located outside of the US.
Read Estée Lauder's executive compensation report here
McDonald's: CEO earned 3,101 times the average worker
Number of employees: 235,000
CEO compensation: $21,761,052
Median worker compensation: $7,017
The median worker at McDonald's is a part-time restaurant crew employee located in Poland.
Read McDonald's executive compensation report here
Mattel: CEO earned 4,987 times the average worker
Number of employees: 35,280
CEO compensation: $31,275,289
Median worker compensation: $6,271
The median worker at Mattel works at the company's Malaysian manufacturing facility, where "pay and wage rates are dramatically lower."
Read Mattel's executive compensation report here