CEO Pay Soars by 50%, Leaving Workers Struggling With Rising Costs of Living, Oxfam Report Reveals
CEO Pay Surges by 50% Globally While Workers Struggle With Rising Living Costs, Reveals Oxfam Report
In a stark revelation released on International Workers’ Day, May 1, Oxfam exposed the widening income gap between corporate executives and everyday workers, showing a dramatic surge in CEO salaries worldwide. The report reveals that the average global CEO now earns an eye-watering $4.3 million annually, marking a 50% real-term increase from $2.9 million in 2019, adjusted for inflation. In contrast, average worker wages have barely moved, registering a meager 0.9% increase over the same six-year period. This alarming disparity was uncovered through data analysis of nearly 2,000 companies across 35 countries, reflecting how executive compensation—bolstered by stock options, bonuses, and incentive packages—continues to outpace the cost of living and worker wages by a wide margin.
Oxfam International’s executive director Amitabh Behar condemned the trend, calling it a grotesque display of economic inequality. He emphasized that this is not a system failure but rather a system functioning as designed, enriching those at the top while workers grapple with financial insecurity. The data shows that CEOs today earn, on average, 56 times more than their employees. This growing disparity is not limited to salaries alone. Billionaires—many of whom are also major shareholders in the corporations they lead—have seen their fortunes balloon. Over the past year alone, billionaires collectively added an average of $206 billion to their wealth, equivalent to earning $23,500 every hour, a figure that overshadows the entire annual income of an average global worker.
Country-wise breakdowns present further insight into income inequality. In India, the average CEO earns about $2 million per year. In Germany, this figure reaches $4.7 million, and in Ireland, it climbs even higher to $6.7 million. South Africa’s average CEO pay is slightly lower at $1.6 million. Meanwhile, workers in India continue to live on the edge. In the Delhi NCR region in 2024, a decent monthly living cost for a family is estimated at Rs 32,565. However, the average net wage after deductions stands at only Rs 21,411—leaving a significant gap of over Rs 10,000 that working families must somehow cover just to meet basic needs. According to the Anker Research Institute, the monthly living wage has marginally improved from Rs 21,221 in 2023, while the cost of living rose from Rs 32,276 to Rs 32,565, showing how the wage gap persists in real terms.
The report also puts a spotlight on the ongoing global gender pay disparity. Despite minor improvements, the gender wage gap continues to paint a bleak picture. An analysis of 11,366 corporations across 82 countries revealed that the pay gap between men and women narrowed slightly from 27% to 22% between 2022 and 2023. However, this still means that women effectively work without pay every Friday, compared to their male colleagues. Some countries, such as Japan and South Korea, reported gender pay gaps nearing 40%, while Latin America recorded an average of 36%. Countries like the UK, Ireland, Denmark, and Canada fared slightly better but still reported a significant 16% gap.
This comprehensive report by Oxfam highlights not only the severe economic inequalities between the top and bottom of the corporate ladder but also the structural issues that continue to marginalize vulnerable populations, especially women. As the world grapples with inflation, housing crises, and healthcare challenges, the gap between executive compensation and average worker pay becomes more than just an economic issue—it is a matter of social justice.
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