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Oct. 9, 2024 |  By: Mark Moran - Public News Service

IA leads nation for wage gap between workers, CEOs

a case of money

By Mark Moran - Public News Service

A new report from the American Federation of Labor showed the pay gap between CEOs and their workers continues to widen and Iowa has among the biggest disparities in the nation.


The report found companies' production costs were down 3% in 2023 but consumer prices were up 3%.

Charlie Wishman, president of the Iowa American Federation of Labor, said company CEO profits are up 6%, even as more families struggle to keep up with a rising cost of living. Wishman pointed out the gap between the CEO and an average worker at a Casey's General Store in Iowa is among the highest in the nation.

"The average CEO pay to the median worker pay, the difference is 623 to 1, meaning the CEO was going to make 623 times more than the median worker wage at Casey's," Wishman outlined.

Wishman noted the Casey's CEO-to-employee wage gap has grown from about 40 to 1 in the 1980s. Casey's said it reviews its salary and bonus structure yearly to be sure they are competitive. Nationwide, the report said it would take more than five career lifetimes for a worker to earn what the average CEO is paid in one year.

The report listed several examples of huge corporate profit increases, including a 66% hike in the former Starbucks CEO's pay. Securities and Exchange Commission documents showed Laxman Narasimhan's compensation jumped from $8.8 million in 2022 to $14.6 million in 2023.

Wishman argued for the average Iowan, such numbers are hard to stomach.

"It's not just that there's so-called 'inflation' going on, that consumers are making 'too much money.'" Wishman asserted. "We actually think it's an excuse that's being used by a lot of corporations to charge consumers more."

In the Starbucks example, the report showed the cost of a medium coffee at the chain has risen by 20% in some locations and the company has doubled the number of points required to qualify for rewards despite its overall production costs going down.