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.

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Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.