Amazon, the US e-commerce and cloud computing giant.
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Amazon and Walmart CEOs Make — Surprise! — Drastically More Money Than Their Employees
CEOs’ salaries have ballooned alarmingly over the past 50 years.
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Last week, when Amazon shared the news that its blockbuster subscription service, Amazon Prime, hit a milestone of more than 100 million members, the e-commerce giant also revealed another astounding number: The average annual salary of an Amazon employee is $28,446.
This income, critics were quick to note, is in stark contrast to that of Amazon CEO Jeff Bezos. According to its annual proxy filing, Bezos’s compensation last year was $1.6 billion, and the data firm Equilar found that he makes 140 times more than his average employee. Per Bloomberg’s Billionaires Index List, his net worth grew by $35 billion in 2017 alone, and the tech executive now has a net worth of $127 billion.
So how can Bezos, the world’s richest person, amass such wealth while plenty of his employees are reportedly living on food stamps? The same way Walmart CEO Doug McMillon earns an annual $22.8 million while the average Walmart worker makes $19,177, as the company’s security filing revealed on Friday.
Amazon and Walmart join a long list of American companies with huge pay gaps. And we’re finally getting the full picture, thanks to a new rule the US Securities and Exchange Commission is enforcing, in which publicly traded companies now have to reveal the pay of their CEOs as well as the average income of employees in their regulatory filings. The mandate is part of the 2010 Dodd–Frank Wall Street Reform and Consumer Protection Act, a reaction to the 2008 recession, in which investment banks, insurance companies, and mortgage companies either collapsed entirely or relied on federal support to keep running.
Dubbed “salary shaming” by the Washington Post, the ratios coming out of this new legislation illustrate just how dramatically CEOs have been able to prosper as their employees continue to earn low wages.
