The CEOs of the 100 largest low -wage employers in America are paid 632 times more than the average worker, according to the study

Key conclusions

• CEO remuneration in relation to workers’ remuneration: From 2019 to 2024, the average CEO’s average remuneration in 100 low -wage companies climbed 34.7%, against an increase of 16.3% for their average median wages of workers – less than cumulative inflation of 22.6% American during the same period. The average CEO now earns $ 17.2 million, while the typical worker receives only $ 35,570 per year. At 22 of these companies, even the nominal median salary has dropped over six years.
• Widening of wage gaps: The PDG -Travailleurs remuneration ratio increased by 12.9%, from 560: 1 in 2019 to 632: 1 in 2024 – more than double the average S&P 500. Starbucks set a new record with a narcotic ratio of 6,666: 1 last year, reflecting the salary package of $ 95.8 million $ for the median employee.
• Share buybacks on investment: These 100 companies spent $ 644 billion on share buybacks between 2019 and 2024. A majority, 56 companies, have invested more in buyouts than in long -term capital improvements, with Lowe’s and Home Depot leading the pack. Lowe’s alone spent $ 46.6 billion, enough for an annual bonus of $ 28,456 for each employee over six years.
• Billionaire fortune: At least 32 American billionaires owe their wealth to these companies, with a combined net value of $ 827 billion.
• Political solutions and public support: The report describes many political reforms to curb excessive wages and redemptions, including higher corporate taxes for disproportionate remuneration gaps – a proposal sustained by 80% of probable voters in a survey in 2024. Other measures include improving the federal tax on the increases in the buyout of action, the restrictions of redeems for companies Government subsidies and references of Payroll ratio to federal merchants.

Case studies: Stark examples

• Starbucks: His median workers’ salary increased only by 4.2% in real terms over six years in the midst of unionization disks. The company spent $ 18.2 billion on redemptions, exceeding capital investments. Almost half of its eligible employees for plans 401 (K) in 2023 had no savings.
• Ulta Beauty: The cosmetics retailer saw the median remuneration of 46% ($ 11,078), while its workforce was moving to a part -time job. The CEO Pay has jumped 45% – now 1,130 times the median. Ulta spent three times more in buyout than capital improvements.

The broader context

The remuneration gap of CEO workers is a problem beyond 100 salary. Among a large sample of 50 public companies with revenues of more than $ 1 billion, a March 2025 study by advisory remuneration partners revealed an extended distribution between the real performance of the company and the remuneration of the CEO. The growth of median income collapsed from one year over the other from 3.7% to 1.6% and the growth of profit per share rose from 0.3 to zero among the 50 companies, but companies have always issued bumper bonuses to their leaders. Significant increases have reached an average increase of 280%, and bonuses increased further by 45% in other companies, Fortune reported.

Two leading academics, Claudio Fernández-Aráoz and Greg Nagel, argued in the fortune pages in April that the data damage. In 1965, CEOs won 21 times more than the average worker; By 2023, this report had increased to 290x. For 100 of the S&P 500 companies, they noted that this ratio increased to 603x in 2022. Adjusted for inflation, they found that the remuneration of CEOs in large companies increased from 878% from 1978 to 2022, while the actual remuneration of workers of 4.5%.

This is part of a broader history of inequalities of wealth, certainly in the United States, where the Congress Budget Office noted at the end of 2024 that the richest 10% wealthy have the majority of assets, and the highest 1% in control almost a third.

There is a little “perfect storm” in the confluence of the primacy of shareholders, share buybacks and the drop in corporate tax rates by which “companies have become greater, the company is increasing, and the advantages they have accumulated for the benefit that they channeled a smaller number of people,” said Irit Tamir, main director of the private sector of Oxfam America, 2024.

Legislative action

The IPS report catalogs a radical set of reforms already on the legislative program at the congress and in cities like Portland and San Francisco. Proposals range from taxes and contractual restrictions for excessive gaps in the CEO workers to strengthen the responsibility of the board of directors, business transparency and shareholders’ powers. Many measures have attracted a solid bipartisan as well as public support.

In the end, the Institute of Political Studies warns that without decisive reform, the largest American companies will regret it. The report quoted Drew Hambly, director of investments for the largest Penson Calpers in the country, warning of the harmful effects of this imbalance during a round table on the SEC on the remuneration of managers. Calpers Research, he said, finds high levels of workers ‘disorders in low-wage companies where workers’ median salary has remained stable or has decreased in the past five years. “I want works councils more than 50% of people who work for them,” he said at the round table. “Because when I go to a company, I probably interact with a worker with a lower salary. And if you are going to drive value over time, it’s the face of your business.”

Starbucks, Lowe’s and Ulta Beauty did not respond to requests for comments.

For this story, Fortune Used a generative AI to help an initial project. An editor checked the accuracy of the information before the publication.