Don’t Mess With Texas – The New York Times
Pay gap between CEOs and workers widens during pandemic
Although a buoyant labor market has pushed up wages for low-wage workers, the average pay gap between these workers and their CEOs widened further last year.
The median salary of workers at companies that tend to pay low wages last year increased by 17%, to $24,000, a jump that more than doubled the rate of inflation, according to research released this morning by the Institute for Policy Studies, a left-leaning think tank.
Yet those rising salaries did not outpace CEO pay gains, which rose 31% in these same companies, at an average of $10.6 million. “We have to acknowledge that there has been some good news in the past year,” Sarah Anderson, lead author of the “Executive Excess” study, told DealBook. “But this could have been a time when companies used rising profits to level the playing field in wages. Instead, we haven’t seen a very big change in pay equity.
CEOs have done even better at companies where salaries have not kept pace with inflation. Median wages for workers at about a third of the companies in the IPS study have not kept pace with inflation. At these companies, the average CEO salary increased by 65%, more than double the increase at all companies in the study. Among the companies highlighted in the report were Best Buy, where the median salary fell 2% last year to $29,999, while CEO Corie Barry received a 30% pay rise to 15 .6 million.
SEC urged to demand more transparency on labor spending
A group of former regulators will ask the SEC to issue new rules, shedding light on the cost and benefits of investing in the workforce. The petition, which DealBook is the first to report, argues that investors need more information about what companies pay workers and urges the SEC to propose several new rules, including requiring companies to disclose how much they invest. in their workforce.
The group includes Stanford’s Joseph Grundfest and NYU’s Robert Jackson, two former SEC commissioners who often held opposing views. “We have different views on regulating companies’ relationships with their employees in general,” they wrote. “But we all share the view that investors need more information.”