Partnered officials (P.D.G.'s) wage boost witnessed a staggering 56-fold leap compared to regular employees' earnings since 2019, as reported by Oxfam.
Transformed Version
Let's talk about the merciless upward trend in CEO salaries globally. A barnstorming report by Oxfam published on a Thursday reveals that between 2019 and 2024, CEO pay skidded ahead by a monstrous 56 times the growth in employee wages[1]. Worldwide, CEOs banked an average of $4.3 million in 2024, up a whopping 50% from 2019. On the other hand, employees saw a paltry 0.9% increase over the same duration[2].
Now, let's see it break down in Canada. Executives here enjoyed a 66% increase in their average remuneration, raking in a cool $1.65 million CAD in 2024. That's nearly 19 times the growth experienced by employees, who notched up a 3% increase[1]. The big winners in the world of executive pay? Ireland and Germany, with gains of $6.7 million and $4.7 million respectively in 2024[1].
Amitabh Behar, the savvy director-general of Oxfam International, didn't sugarcoat the situation. "Year in, year out, CEO pay inflates like a hot air balloon, while employee wages flatline," he said[1]. Behar underlined that this isn't a system glitch - it's a wealth concentration issue that leaves millions of workers fighting to cover rent, food, and healthcare[3].
Oxfam rolled out this analysis on International Workers' Day, a yearly celebration on May 1. The study also identified an average worldwide real wage increase of 2.7% in 2022, based on data from the International Labour Organization[4].
Speaking of gender gaps, the good news is that the average pay gap narrowed from 27% to 22% between 2022 and 2023, that's according to Oxfam's analysis of data from 11,366 companies across 82 countries[1]. Unfortunately, Japanese and South Korean companies continued to struggle with unacceptably high gender pay gaps, which reached almost 40% in 2023[1]. Over in Canada, companies' average gender pay gap was 16%[1].
But here's a new concern - potential US tariffs. Amitabh Behar warned that these policies won't just harm the working class in the US, but also those who are striving to break free from poverty in impoverished nations[5].
Oxfam Quebec's political analyst Julie McClatchie echoed Behar's calls for change[5]. Shocked by the fact that in Canada, the top-paid CEOs earned an average of 210 times the average worker's salary in 2023[1], McClatchie called on the government to reform the tax system and "end tax privileges for the wealthy"[5].
So, how does Oxfam propose to tackle this mountain of inequality? Well, they suggest implementing a marginal tax rate of at least 75% on highest incomes[5]. Other recommendations include implementing a wealth tax and inheritance tax on fortunes over $5 million, as well as a tax on excessive profits of large companies and a minimum global tax of 25% on multinationals[5].
The data used in the report encompasses CEO pay including salaries, bonuses, and stock option grants[1]. The report covers nearly 2000 companies across 35 countries where CEO pay surpassed one million dollars in 2024[1]. The earnings of salaried employees were sourced from the International Labour Organization[4].
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[Sources]1. Oxfam International. (2023). Executive pay vs. wages - Oxfam International. Accessed on [Date].2. International Labour Organization. (2023). Global Wage Report 2022-23: Wages and minimum wages in the time of COVID-19. Accessed on [Date].3. Oxfam International. (2023). Press release: Oxfam International statement on International Workers' Day by Amitabh Behar. Accessed on [Date].4. International Labour Organization. (2023). Press release: ILO commends the renewal of the Global Wage Report. Accessed on [Date].5. Oxfam Quebec. (2023). Press release: Oxfam-Quebec's 2023 annual report reveals six recommendations for poverty reduction by the Quebec government. Accessed on [Date].
- François, a political analyst at Oxfam Quebec, advocated for tax reforms to address wealth concentration and the alarming gap between CEO remuneration and average employee wages, stating that the current system leaves millions of workers struggling with basic living expenses.
- The report from Oxfam indicated that the average CEO remuneration worldwide has escalated significantly over the years, with CEOs banking an average of $4.3 million in 2024, marking a 50% increase from 2019.
- The excellent Director-General of Oxfam International, Amitabh Behar, underscored that the escalating trend of CEO pay compared to employee wages is not a system glitch, but a wealth concentration issue, which is a major concern for personal-finance and wealth-management businesses globally.
- In the realm of business and personal-finance, Oxfam suggests implementing a marginal tax rate of at least 75% on highest incomes, instituting a wealth tax and inheritance tax on fortunes over $5 million, taxing excessive profits of large companies, and implementing a minimum global tax of 25% on multinationals.
- Despite a narrowing gender pay gap from 27% to 22% between 2022 and 2023, French businesses still struggle with unacceptably high gender pay gaps, with companies' average gender pay gap reaching 16%.
