At Abercrombie & Fitch and Starbucks, CEOs made over 6,000 times more than what the median worker earned last year.
According to the AFL-CIO’s annual Executive Paywatch report, released Wednesday, Abercrombie & Fitch and Starbucks were the two companies with the highest pay differences between CEOs and median workers in 2024. The report was based on filings the companies submitted to the U.S. Securities and Exchange Commission.
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Abercrombie & Fitch topped the list, with the median worker making $2,531 in 2024. That was 6,731 times less than the $17 million compensation received by the company’s CEO, Fran Horowitz, 61, that year. Meanwhile, Starbucks CEO Brian Niccol, 50, earned $95.8 million in 2024, or 6,666 times more than the median worker, who made $14,674 that same year.
Abercrombie & Fitch CEO Fran Horowitz. Photo by Jeff Spicer/Getty Images
Both companies employ thousands of hourly employees, which is the reason for the wide pay gap. Abercrombie employs approximately 32,600 hourly workers out of 39,200 associates globally, with hourly workers making anywhere from minimum wage to $37.47 per hour. Starbucks employs 400,000 global employees, the majority of whom are hourly workers making an average of $19 per hour.
These pay differences are outside the norm, especially when including companies that don’t have hourly workers. The report noted that for S&P 500 companies, the average CEO made 285 times more than the median worker in 2024.
Overall, the highest-paid CEO last year was Brad Jacobs, the founder and CEO of roofing company QXO, who received over $189 million in compensation. Peter Gassner of software company Veeva Systems and Patrick Smith of technology and weapons company Axon Enterprise followed on the highest-paid list, with compensation of over $172 million and $164 million, respectively.
Starbucks CEO Brian Niccol. Photo by Michael Reaves/Getty Images
Do CEO pay ratios matter?
The report claims that high CEO-to-worker pay ratios, which indicate a greater income gap, can “undermine employee morale and productivity.” The Madison Trust Company, an investment firm with $5.5 billion in assets, agrees with this assessment, pointing out that high pay ratios can lead to a “demoralized workforce” and raise questions about “fairness, equity, and corporate oversight.”
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The Executive Paywatch report found that the average CEO also received a $1.24 million raise last year, a 7% increase from 2023, for an average total compensation of $18.9 million. Meanwhile, the median U.S. worker received a 3% raise from 2023 to 2024, with earnings reaching $49,500 in 2024.
Overall, CEOs are compensated better than ever. Across the past decade, average CEO pay among S&P 500 companies has increased by $6.5 million.
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