5 Things You Need to Know from the AFL-CIO's New Executive Paywatch Report
Yesterday, the AFL-CIO released the 2017 edition of its Executive Paywatch report. The Executive Paywatch website, the most comprehensive, searchable online database tracking CEO pay, showed that in 2016, the average production and nonsupervisory worker earned some $37,600 per year. When adjusted for inflation, the average wage has remained stagnant for 50 years.
AFL-CIO President Richard Trumka explained the importance of these details:
This year’s report provides further proof that the greed of corporate CEOs is driving America’s income inequality crisis. Big corporations continually find ways to rig the economy in their favor and line their CEOs’ pockets at the expense of the workers who make their businesses run. Too often, corporations see workers as costs to be cut, rather than assets to be invested in. It’s shameful that CEOs can make tens of millions of dollars and still destroy the livelihoods of the hardworking people who make their companies profitable.
Here are five key things you should know from this year's Executive Paywatch report:
- The average compensation for an S&P 500 CEO last year was $13.1 million. In contrast, production and nonsupervisory workers earned only $37,632, on average, in 2016. The average S&P 500 CEO makes 347 times what an average U.S. rank-and-file worker makes.
- Last year, S&P 500 CEOs got a 5.9% raise while working people struggled to make ends meet.
- Many U.S. corporations aren't paying taxes on their offshore profits, shifting the burden to working people. The worst of the tax avoiders, 18 Fortune 500 companies, paid $0 in federal taxes between 2008 and 2015.
- Fortune 500 corporations are avoiding up to $767 billion in U.S. federal income taxes by holding $2.6 trillion of "permanently reinvested" profits offshore. This offshoring isn't an accident, it's a choice, and it has an impact on the lives of Americans. For example, last year, Mondelēz International chose to offshore some 600 jobs from its Chicago Nabisco bakery. In the same year, its CEO, Irene Rosenfeld, made $16.7 million.
- Seven years ago, Congress passed a law that included a rule requiring all publicly traded companies to disclose their CEO-to-worker pay ratio. But Wall Street and big corporations have lobbied hard to stop the U.S. Securities and Exchange Commission from enforcing this rule. Take action now to change that.