The salaries of top bosses have skyrocketed in recent years, widening the pay gap between CEOs and their employees, who by and large have seen their income stagnate. As regulators in the US and elsewhere force firms to disclose CEO-to-worker pay ratios, we reveal exactly how much 30 major company bosses around the world get paid compared to their staff.
Public companies in the US are now required by law to publish CEO-to-worker pay ratios. Last year, the typical boss of an S&P 500 company earned 287 times more than the average employee, but there are some striking exceptions. The lowest-paid boss on the Equilar 100 survey of CEO pay at America's 100 biggest firms, Berkshire Hathaway big cheese Warren Buffett earned a relatively modest $388,968 (£320k). That's just seven times more than the median worker's salary.
Broadcom CEO Hock E Tan also saw his compensation decrease by a whopping 95% in 2018 as featured on the Equilar 100. A fat bonus and one-time stock award inflated Tan's pay in 2017 to $103.2 million (£84.8m), 2,039 times more than the median employee, making him America's highest-paid executive. But last year, the boss of the tech giant earned just over $5 million (£4.1m), which was only 25 times more than the average employee's salary.
The boss of Europe's leading low-cost airline agreed to forgo his bonus last year due to a disastrous pilot shortage that plagued the company in Autumn 2017 and resulted in the cancellation of 2,000 flights. According to Skift's Highest-Paid European Travel CEOs round-up, O'Leary earned $2.6 million (£2.1m) in 2018, which is 62 times more than the average Ryanair employee's salary of $42,000 (£34.5k) as collated by PayScale.
Is L'Oréal's CEO Jean-Paul Agon really worth his hefty salary? The Times newspaper reported that the skincare and cosmetics executive was paid an average of $23.5 million (£19.3m) a year from 2013 to 2015, but his compensation has since dipped. LeRevenu magazine found that Agon received a package amounting to $8.7 million (£7.2m) last year, around 85 times more than the company's median salary of $101,973 (£83.8k) as reported by Paysa.
Chief executive salaries in Germany reached record levels last year with outgoing Daimler boss Dieter Zetsche being one of the highest-paid executives in the country. His 2018 pay packet totalled $9.2 million (£7.6m) according to The German Times. Figures from Paysa show the typical Daimler worker pocketed $92,154 (£75.7k), 100 times less than the company CEO.
One of three female executives in our round-up, Shemara Wikramanayake of Macquarie Group earned more last year than the combined pay of the CEOs of Australia's Big Four banks. Newspaper Stuff reports that her total compensation came in at $11.7 million (£9.6m), 104 times more than the median worker's salary of $112,596 (£92.2k) as collated by Paysa. Following America's lead, plans are afoot Down Under to force companies to reveal CEO-to-worker pay ratios.
At present, Canadian companies are under no obligation to report CEO-to-worker pay ratios, but a recent investigation by Le Journal de Montréal newspaper has revealed precisely how much certain bosses in the country are paid in relation to their staff. Dollarama CEO Neil Rossy for example took home just under $3 million (£2.5m) last year, 199 times more than the retailer's typical employee.
France's highest-paid CEO in 2018 by a significant margin, Dassault Systèmes top dog Bernard Charlès was awarded a super-generous package totalling $25.5 million (£21m) LeRevenu has found. According to Paysa, the median employee made $122,428 (£100.6k) last year, giving a CEO-to-worker pay ratio of 208:1.
Stefan Heidenreich, who retired on 31 December 2018, was given a spectacular golden handshake, earning $26.1 million (£21.5m) last year according to The German Times. The total compensation awarded to the now former CEO of Beiersdorf, which owns a plethora of world-famous brands from Nivea to Elastoplast, works out at around 242 times more than the company's median wage as compiled by Paysa.
The highest-paid CEO among America's Big Three automobile manufacturers as reported by The Detroit News, General Motors boss Mary Barra was paid $21.9 million (£18m) last year, a small decrease compared to her 2017 compensation package, which stood at $22 million (£18.1m). The median salary for GM workers was $77,849 (£64k), so this gives the company a CEO-to-worker pay ratio of 281:1.
The CEO of Canada's third-largest grocer Metro did very well for himself last year. Eric R La Flèche received a compensation package totalling just over $5 million (£4.1m). According to Le Journal de Montréal, the retail boss was paid 354 times more than the chain's average employee, who earned just $14,139 (£11.6k).
As is the case in many countries around the world, executive pay in India is rising fast. TechGig has revealed that during the 2018-19 fiscal year, the pay package awarded to Infosys CEO Salil Parekh came in at $3.6 million (£3m), which is 396 times more than what the typical employee made, and a stark increase from the previous tax year when the ratio was 273:1.
Staying in India, Wipro boss Abidali Neemuchwala was paid just over $4 million (£3.3m) in 2018, an increase of 41% compared to the previous year. The same TechGig investigation found that Remuneration in the IT and business processing company averaged out at a paltry $7,252 (£6k), giving a CEO-to-worker pay ratio of 455:1.
This is in contrast to the firm's owner Azim Premji: the Wipro billionaire who gave billions to charity
Last year, Palo Alto Networks CEO Nikesh Arora received a massive $125 million (£102.7m) in compensation according to The Wall Street Journal, making him America's second highest-earning boss. Be that as it may, the tech firm's CEO-to-worker ratio is less stark than expected as its median salary is a very respectable $223,885 (£183.9k) as reported by the Silicon Valley Business Journal.
James Murdoch, CEO of the now-defunct 21st Century Fox, enjoyed a 125% pay rise during 2018, pushing his compensation up to $44.4 million (£36.5m). This places the Murdoch scion in position four on the Equilar 100. The median employee at the mass media company earned just under $60,000 (£49.3k), which makes for a CEO-to-worker pay ratio of 741:1.
Starbucks employees are entitled to all sorts of fabulous benefits from free college education to healthcare, so the fact the company CEO Kevin Johnson earned 1,049 times more than the typical member of staff last year is considerably less galling. In total, Johnson was awarded $13.4 million (£11m) in 2018 according to Equilar.
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Disney boss Bob Iger was recently called out for his excessive pay packet by activist Abigail Disney, who is the granddaughter of company co-founder Roy O Disney and Walt Disney's great-niece. She has described the compensation as "insane". Last year, Iger pulled in $65.6 million (£53.9m) according to Equilar, 1,424 times more than the typical Disney employee.
CNN also found that the median worker at McDonald's grossed just $7,473 (£6.1k) in 2018, yet the CEO of the fast-food behemoth ended the year $15.9 million (£13.1m) richer – 2,124 times more than his employees. Still, Easterbrook actually received a pay cut in 2018 – his compensation in 2017 totalled an even more excessive $21.8 million (£17.9m).
The vast majority of Mattel employees are based in countries like Indonesia where pay tends to be a lot lower than in the US. As a consequence, the median worker's wage was just $5,489 (£4.5k) in 2018 according to CNN. This contrasts starkly against the compensation received last year by the toy firm's boss Ynon Kreiz, who earned almost $17 million (£14m).
The most cavernous gap between CEO and typical employee's pay last year was at the Gap if you can excuse the pun. CNN has revealed that CEO Art Peck amassed $20.8 million (£17.1m) in 2018 while the median worker earned only $5,831 (£4.8k), creating a tremendous CEO-to-worker pay ratio of 3,566:1. The clothing retailer puts this down to the company's multitude of entry-level sales associates, many of whom work part time.