Eight companies where executives are paid 1000 times more than employees

Research by Bloomberg reveals the extent of the pay gap between executives and employees at 250 companies.

Yesterday Swiss voters rejected a proposal to cap executive pay at twelve times that of junior employees. The referendum was opposed by 65 per cent of voters, and the turnout for the vote was surprisingly high – the highest in three years, in fact – at 53 per cent.

Earlier this year, Bloomberg conducted research into CEO to employee pay ratios at the top 250 companies from Standard & Poor’s 500 Index. Needless to say, not one pays ordinary employees anywhere near a twelfth of their executives’ salaries – the lowest executive to employee pay ratio on the list is 173:1 (at Agilent technologies). Eight companies pay their executives over 1000 times more than they pay their average worker.

Six out of the top ten highest-ranked companies in terms of CEO:employee pay ratios are consumer companies. There are four clothing firms (JC Penney, Abercrombie and Fitch, Nike and Ralph Lauren) and two food companies (Starbucks and Yum! – which owns brands like Taco Bell and Pizza Hut). To take the example of Starbucks, its UK sales didn't suffer any long-term damage from news of its creative tax accounting, so it's unlikely to be too worried about the PR implications of its unfair pay scales - perhaps the average consumer, like Swiss voters, doesn't really care. I, however, am happy to boycott all six until their executives explain just how they are 800 times more valuable than their average employee.

Here is a list of the top ten companies with the highest CEO to employee pay ratios, according to Bloomberg’s research:

JC Penney Co. 1795:1
Abercrombie & Fitch 1640:1
Simon Property 1594:1
Oracle Corp: 1287:1
Starbucks: 1135:1
CBS Corp 1111:1
Ralph Lauren 1083:1
Nike 1050:1
Discovery Communications: 833:1
Yum! Brands Inc 819:1

The City of London. Photo: Getty.

Sophie McBain is a freelance writer based in Cairo. She was previously an assistant editor at the New Statesman.

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
Show Hide image

Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

0800 7318496