On the eve of International Workers’ Day, a new report from Oxfam depicts the stark reality of growing global income inequality: average CEO pay has increased by 50% in real terms since 2019, while worker wages have seen a negligible rise.
What Happened: The report, released in collaboration with the International Trade Union Confederation (ITUC), advocates for widespread reforms to address what it describes as a system rigged in favor of the ultra-rich.
Oxfam’s review of nearly 2,000 companies across 35 countries shows that global CEO compensation averaged $4.3 million in 2024. This figure is up from $2.9 million five years earlier, after adjusting for inflation.
On the contrary, the average worker's pay increased by 0.9% in the same period. The report is based on data from the S&P Capital IQ database and comprises full executive packages with bonuses and stock options.
Recently, another analysis showed that only 19 U.S. households, including those of Tesla Inc. CEO Elon Musk, Berkshire Hathaway Inc. CEO Warren Buffett, and Amazon.com Inc. founder Jeff Bezos, added $1 trillion to their net worth in 2024.
Why It Matters: "Year after year, we see the same grotesque spectacle: CEO pay explodes while workers’ wages barely budge. This isn't a glitch in the system —it's the system working exactly as designed, funnelling wealth ever upwards while millions of working people struggle to afford rent, food, and healthcare," said Oxfam International Executive Director Amitabh Behar.
Oxfam notes that billionaires acquired $206 billion in new wealth in just the past year—almost $23,500 per hour, which is more than the average annual income globally.
The report spotlights other threats to worker livelihoods, like the impact of newly imposed U.S. tariffs. "For so many workers worldwide, President [Donald] Trump's reckless use of tariffs means a push from one cruel order to another: from the frying pan of destructive neoliberal trade policy to the fire of weaponized tariffs. These policies will not only hurt working families in the US, but especially harm workers trying to escape poverty in some of the world's poorest countries," said Behar.
To address this situation, Oxfam and ITUC are advocating for an income tax rate of at least 75% on those earning at the highest levels.
This report comes in the heels of an interview where Trump backed the idea of increasing taxes on millionaires, leading to pushback from the more conservative circles in the GOP.
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