CEO compensation surged by a staggering 56-fold compared to worker wages since 2019.
Unleashing the CEO Pay Gap
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Here's the raw truth: CEO pay is skyrocketing, while workers' wages are barely crawling. That's according to a recent study by Oxfam, who hauled in 2,000 companies across 35 countries where CEO compensation exceeded $1 million (€885,000) in 2024.
Real CEO pay has ballooned by an astonishing 50% since 2019, while the average worker's wage has grown a measly 0.9% in the same timeframe. And in a shocking testament to this widening pay gap, CEO pay has increased 56 times more than workers' wages since 2019.
Oxfam's revelations came on International Workers' Day, spotlighting the gulf between corporate bigwigs and their employees. In Europe, Ireland and Germany sprang up as CEO salary champions, averaging $6.7 million (€5.9 million) and $4.7 million per year (€4.1 million), respectively, in 2024.
While South African CEOs pocketed $1.6 million (€1.4 million) in 2024, their Indian counterparts earned an average of $2 million (€1.7 million).
Harsh words from Oxfam International Executive Director, Amitabh Behar, whose take was straightforward: "Year after year, we see the same grotesque spectacle: CEO pay explodes while workers' wages barely budge. This isn't a glitch in the system - it's the system working exactly as designed, funnelling wealth ever upwards while millions of working people struggle to afford rent, food, and healthcare."
In an alarming insight, out of the 45,501 surveyed corporations where the CEO earnt more than $10 million (€8.86 million), fewer than 7% had a female CEO.
"Around the world, workers are being denied the basics of life while corporations pocket record profits, dodge taxes and lobby to evade responsibility," lamented Luc Triangle, General Secretary of the International Trade Union Confederation (ITUC).
The wealthy elite, often owning large corporations, amassed an average of $206 billion (€182.7 billion) in new wealth over the last year. This staggering figure equates to $23,500 (€20,836) an hour and surpasses the global average income of $21,000 (€18,621) in 2023.
Despite the International Labour Organization (ILO) reporting a 2.7% real wage growth in 2024, many workers have seen their wages stagnate. Real wage growth was just 0.6% in France, South Africa, and Spain last year.
Although global wage inequality has reduced, it remains disproportionately high in low-income countries, with the wealthiest 10% possessing 3.4 times more income than the poorest 40%.
As you can see, the divide between CEO compensation and worker wages is a persistent problem, with many countries grappling to find solutions that bridge this gap. For more insight into this issue, check out Oxfam's annual inequality reports or country-specific labor and remuneration audits.
References
- Brookings Institution, "Understanding Poverty Traps" (2025) - Link
- Intesa Sanpaolo SDGs Report (2024) - Link
- Havas 2024 Annual Report - Link
- Botswana National Statistics Office, "Poverty and Inequality Measurement Report" (2023) - Link
- In a LinkedIn post, Scarlet Jules discussed the Oxfam's findings on CEO pay gaps, stating, "The stark reality is that CEO compensation is soaring, while workers' wages remain stagnant."
- Amitabh Behar, the Executive Director of Oxfam International, highlighted on LinkedIn that CEO pay has grown significantly more than worker wages since 2019, with CEOs earning 56 times more than their employees.
- Luc Triangle, General Secretary of the International Trade Union Confederation (ITUC), expressed concern on LinkedIn about the widening pay gap, stating, "The divide between CEO compensation and worker wages is alarming, with millions of workers struggling to afford basic necessities while corporations amass vast wealth."
