WASHINGTON, D.C. – A new study by Equilar, reported from Reuters, reveals that the median pay for top U.S. CEOs rose 31% to a record $20 million last year. The analysis, which covered the largest 100 companies by revenue, also discovered that increased CEO compensation had caused the CEO-worker pay ratios of these corporations to increase from 238:1 to a staggering 254:1. The growing CEO-worker pay ratio is further evidence major corporations are making out like bandits during the economic recovery while consumers continue to pay the price. For months, Accountable.US has highlighted how major companies have used the pandemic as an excuse to increase their wealth and line their own pockets at the expense of their customers.
With corporate profits at their highest levels in over 50 years and their executives rewarding themselves with massive new bonuses, why did they need to raise prices so high on average customers? For companies that are doing exceedingly well and yet chose to raise prices excessively, it’s clear they’d rather pad their profits instead of keep prices stable for average families. It’s textbook corporate greed.”
Kyle Herrig, president of Accountable.US.
SEE MORE EXAMPLES OF CORPORATE GREED FROM THE COMPANIES IN EQUILAR’S STUDY:
- Apple, which is expected to increase prices on its upcoming iPhone Line, bragged about its “biggest quarter ever” with a record-breaking $34.6 billion in profit and $124 billion in revenue in its first quarter. In this same quarter, the company saw over $24 billion in shareholder handouts after CEO Tim Cook received $98.7 million last year, according to Equilar.
- After it announced incoming price hikes in September 2021, Nike recently reported $1.4 billion in quarterly net income—all while it bragged about approximately $1.7 billion in shareholder handouts and a 12% increase in shareholder dividends.
- Shortly after household goods giant Procter & Gamble announced price hikes on its Tide and Gain brands in January 2022, the company reported $4.2 billion in second quarter profits and plans for at least $17 billion in shareholder handouts.
- In September 2021, FedEx announced it would impose several surcharges in addition to increasing shipping rates by 5.9% for many of its most common shipping services. These new charges included a fuel surcharge, a “delivery and returns” surcharge for FedEx Ground Economy services, and many others. Mere months later, FedEx reported that it enjoyed a 25% increase in net income in its third quarter and spent over $2.8 billion on shareholder handouts in the first three quarters of its 2022 fiscal year.