## CEO Pay Trends and Wage Inequality
A recent study by Oxfam, a research and advocacy organization, highlights that the average salary for CEOs in India has reached 2 million dollars annually. The study also reveals that the average remuneration for CEOs worldwide has increased by 50 percent in real terms since 2019, compared to a mere 0.9 percent rise in the average wages of workers.
The analysis shows that billionaires accumulate more wealth in one hour than what the average worker earns in an entire year. It also points out that the average gender pay gap across 11,366 companies globally has slightly decreased from 27 percent to 22 percent between 2022 and 2023. However, female employees still effectively work unpaid on Fridays, while their male counterparts are compensated for the entire week.
The study notes that this increase in CEO pay represents a 50 percent real-term rise from 2.9 million dollars in 2019 after adjusting for inflation. This growth significantly surpasses the real wage increase for average workers, who experienced only a 0.9 percent growth during the same five-year span in countries where CEO pay data is accessible.
Countries like Ireland and Germany report some of the highest average CEO salaries, with figures of 6.7 million dollars and 4.7 million dollars respectively in 2024. In South Africa, the average CEO earns 1.6 million dollars, while in India, the figure has reached 2 million dollars.
## The Impact of CEO Pay on Workers
Oxfam International’s executive director, Amitabh Behar, commented on the troubling trend, stating that year after year, the disparity is evident, with CEO pay soaring while worker wages barely change. He emphasized that this situation is not a flaw in the system but rather it functioning as intended, concentrating wealth at the top while millions of workers struggle to meet their basic needs such as housing, food, and healthcare.
The increase in global CEO compensation coincides with growing concerns that wages are not keeping up with the rising cost of living. The International Labour Organization reported a real wage growth of 2.7 percent in 2024, but many workers have not seen any substantial increase in their earnings. For instance, in France, South Africa, and Spain, real wage growth was only 0.6 percent last year. Although global wage inequality has decreased, it remains significantly high, especially in low-income nations where the wealthiest 10 percent earn 3.4 times that of the poorest 40 percent.
## Billionaires and New Economic Challenges
The study indicates that billionaires, who often have full or partial ownership of large corporations, gained an average of 206 billion dollars in new wealth over the past year. This figure translates to approximately 23,500 dollars an hour, exceeding the global average income of 21,000 dollars in 2023.
In addition to the rising CEO pay, the global workforce now faces another challenge: sweeping tariffs implemented by the United States. These policies could lead to significant risks for workers around the world, including job losses and increased prices for essential goods, which could exacerbate inequality.
Behar remarked that for many workers globally, the reckless use of tariffs by US President Donald Trump represents a shift from one harmful economic system to another. This shift moves from detrimental neoliberal trade policies to punitive tariffs, which will not only negatively impact American working families but will also disproportionately affect those striving to escape poverty in some of the world’s poorest regions.
## Gender Pay Gap Reporting
Corporations are increasingly mandated by law to disclose their gender pay gaps, which reflect the average earnings difference between male and female employees. Oxfam’s analysis of data from the S&P Capital IQ database revealed that among the 11,366 companies across 82 countries reporting gender pay gap information, the average disparity slightly declined from 27 percent to 22 percent from 2022 to 2023. However, the study noted that, on average, women in these companies still end up working unpaid on Fridays, while their male colleagues are compensated for the entire week.
