"We've gotta decide, are we going to pay our electric bill? Or, jeez, are we going to go over here and get this medication?" Ferdinandsen said. While CEOs are enjoying their luxury watches and second homes, she said, workers like her are having to make tough choices. She earns $27 an hour and says she hasn't had a raise since she was hired. The pay disparities rankle autoworkers, especially those who have seen their wages stagnate as their companies' profits have soared in recent years.ĭawnya Ferdinandsen, 54, builds transmissions at a GM plant in Toledo, Ohio, a job she has held since 2016. To put that in perspective, in just one year - between 20 - Stellantis CEO Carlos Tavares' total remuneration rose by 22%. "But the question is, how much higher than everyone else?" "Obviously, CEOs should be the highest-paid person in an enterprise," said EPI Chief Economist Josh Bivens, who co-wrote the report. In 2021, CEOs earned 399 times the typical worker, the EPI report found. In the same period, workers' wages, adjusted for inflation, have barely budged. CEO pay skyrocketed along with the stock market, with the S&P 500 increasing by more than 1,000% since 1990. In 1965, CEOs typically earned 20 times the typical worker's pay in their industries, according to a report from the left-leaning Economic Policy Institute (EPI).īut executive compensation soared, especially in the 1980s and 1990s, when CEOs were lionized and a large chunk of their pay was linked to their company's stock performance. This kind of pay disparity was not always a given. ![]() As of Friday, the automakers offered raises as high as 14.5% over four years, which Fain characterized as "deeply inadequate." Since the 1990s, CEO pay has skyrocketed alongside the stock market The automakers have so far countered the UAW's wage demands with far more modest proposals. Securities and Exchange Commission filings "That means a newly hired Ultium worker would have to work full time for 16 years to earn what Mary Barra makes in a single week," Fain said.ĬEO-worker 2022 compensation at Big Three automakers Publicly traded companies are required to disclose the ratio of their CEO's pay to their median employee's pay.įain, UAW's president, said that in comparison, a worker makes $16.50 as an hourly starting wage at Ultium Cells, GM's joint-venture battery plant in Lordstown, Ohio. Securities and Exchange Commission filings show that this is 362 times the median GM employee's paycheck. ![]() General Motors CEO Mary Barra, the highest-paid chief executive among the Big Three, made nearly $29 million in 2022. ![]() General Motors CEO makes 362 times the median employee "The Big Three CEOs saw their pay increase by 40% over the last four years, while our pay only went up by 6%," UAW President Shawn Fain said at a news conference last week.Īs of Tuesday, the UAW is proposing an approximately 40% compounded wage increase over the course of a four-year contract, a tad lower than its opening bid of 46%.
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