The pay gap widened in 2021 in low-wage companies

According to the study, the average difference in 2021 was 670 to 1 compared to 604 to 1 the previous year, with 49 companies having ratios above 1,000 to 1.

The average compensation of executives increased by $ 2.5 million (€ 2.34 million) to $ 10.6 million, while the average compensation of employees increased by $ 3,556 to $ 23,968.

These results will provide new arguments for investors who advocate greater social justice within the Environmental, Social and Governance Criteria (ESG).

American companies are facing an unprecedented wave of ESG-related shareholder resolutions this year, often raising the issue of employee treatment.

“During the pandemic, low-wage workers have shown how essential it is for our economy to work. With rising profits in 2021, companies have had the opportunity to take a big step towards greater pay equality,” said Sarah Anderson, director of the Global Economy project at IPS.

The study found that in 106 companies, the average wage of workers did not keep pace with the average inflation rate of 4.7% in the United States during the period. In this group, 67 companies spent a total of $ 43.7 billion on share repurchases during this period, increasing the remuneration of executive shares.

In response, a growing number of workers are looking for a change of job, a trend known as “big resignation.”

A March global survey by consulting firm PwC found that one in five employees would “extremely” or “very likely” change employers in the next 12 months.

The COVID-19 pandemic has led investors to take a closer look at how companies treat their employees, albeit at a recent annual meetingAmazon (), many were reluctant to take the lead on these issues.

(Report by Simon Jessop; French version by Augustin Turpin, edited by Kate Entringer)

Elliot Frost

"Pop culture maven. Analyst. Writer. Wannabe food evangelist. Organizer. Friendly internet lover. Incurable troublemaker. Entrepreneur."

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