Newsweek: Under Trump, CEO Pay Soars While Employee Wages Decrease

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Newsweek: Under Trump, CEO Pay Soars While Employee Wages Decrease

The American Dream should be more than just that: a dream.

But under Republican leadership, it’s getting even tougher for Americans to claim that anyone who works hard will have a fair shot to get ahead.At least that’s what this recent report demonstrates: CEO pay is on the rise while employees’ wages are not. Chief executives earned 312 times more than the average employee during President Trump’s first year in office.

This is exactly why Sherrod fights every day for policies that help all Americans get ahead, so Republicans are held accountable for the inequality that continues to plague this country, and so we can take steps towards fixing it. Get the details on the troubling numbers below, and show your support for Sherrod now:

Newsweek: Under Trump, CEO Pay Soars While Employee Wages Decrease—And Tax Cuts Could Make Gap Even Bigger

Nicole Goodkind – August 16, 2018

Key points:

  • Compensation for America’s top executives grew 17% in 2017 as real wages for workers declined, according to a study released Thursday.

  • Despite President Donald Trump’s repeated promises to raise the salaries of average Americans, chief executives earned 312 times more than the average employee during his first year in office, according to a new analysis by the Economic Policy Institute (EPI).

  • The average CEO of the largest 350 companies in the U.S. received $18.9 million in compensation last year, up from $16 million in 2016.

  • Under the Republicans’ tax plan, companies spent 37 times more on stock buybacks than on bonuses or increased wages for workers. These buybacks bolstered share price and benefited top executives, who tend to receive stock as part of their compensation package.

  • The study also compared CEO pay growth with the wage growth of the top 0.1% of wage earners. It found that in the past 40 years, CEO pay has grown by 1,070 percent, while the top wage earners have seen growth of 308%.

  • The gap between chief executives and workers continues to grow. Last year, McDonald’s CEO Steve Easterbrook earned $21.7 million, while his employees brought home a median wage of $7,017. Walmart CEO Doug McMillon earned over $22 million, while employees earned about $19,000.

Read more here.