The disparity between CEO compensation and average worker wages has reached alarming levels, according to a recent report from Oxfam. Since 2019, the average pay for CEOs globally has surged by 50% in real terms, while workers have experienced a meager salary increase of just 0.9%. These findings highlight a staggering reality: CEO earnings have risen 56 times more than those of their employees.
Stark contrasts in earnings across countries
The Oxfam report, released to coincide with International Workers’ Day, draws from an analysis of 2,000 companies across 35 countries, focusing on those whose CEOs earned over $1 million (€885,000) in 2024. In Europe, Ireland and Germany topped the list, with average CEO earnings of $6.7 million (€5.9 million) and $4.7 million (€4.1 million) respectively. Conversely, average CEO earnings in South Africa were reported at $1.6 million (€1.4 million), while in India this figure reached $2 million (€1.7 million).
Systemic issues and growing inequality
“Year after year, we see the same grotesque spectacle: CEO pay explodes while workers’ wages barely budge,”
stated Oxfam International Executive Director Amitabh Behar. He emphasized that this trend signifies not a flaw but a feature of a system designed to concentrate wealth at the top, leaving countless workers struggling to meet basic needs such as shelter, food, and healthcare.
The report also highlights a dismal representation of women in top executive roles, revealing that out of 45,501 companies with CEOs earning over $10 million (€8.86 million), fewer than 7% were women.
Luc Triangle, General Secretary of the International Trade Union Confederation (ITUC), remarked,
“Around the world, workers are being denied the basics of life while corporations pocket record profits, dodge taxes and lobby to evade responsibility.”
Additionally, the wealth accumulation among billionaires has sharply accelerated, with an average gain of $206 billion (€182.7 billion) in just one year. This amounts to an astonishing $23,500 (€20,836) earned every hour, surpassing the global average income for 2023, which stands at $21,000 (€18,621).
Though the International Labour Organization (ILO) reported a 2.7% growth in real wages for 2024, many employees continue to face stagnation. Countries such as France, South Africa, and Spain only saw a real wage growth of 0.6% last year. Overall, while wage inequality has decreased on a global scale, it remains starkly pronounced in low-income nations. In these areas, the wealth of the richest 10% is 3.4 times greater than that of the poorest 40%.