This fall, local Starbucks baristas will share their thoughts while making yet another pumpkin spice latte.
Starbucks’ new CEO, Brian Nicole, is set to receive a compensation package potentially worth up to $95.8 million for his performance between September and December 2024.
But Nicole is not alone in this compensation surge. According to a report by the Institute for Policy Study titled Executive Over 2025, pay for CEOs and stock buybacks have risen dramatically across the top 100 low-wage companies.
5 jobsEmploymentAmerican
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- Policy Associates, LHH, Tulsa
- Director of Government Affairs, Corgovine, Malvern, North America
Hit big time
From 2019 to 2024, the average compensation for this group of CEOs increased by 34.7%, which is more than double the rise in average worker wages at these companies.
To put things in perspective, U.S. inflation during this time reached 22.6%.
The report also highlighted that over the last six years, 73 out of the 100 largest low-wage companies engaged in stock buybacks, which contributed to inflated executive salaries at the cost of worker pay.
Lowe’s, for instance, completed a notable repurchase during this period, spending $46.6 billion on share buybacks from 2019 to 2024.
In 2024, Lowe’s CEO Marvin Ellison report a median total compensation of $30,606 compared to the average annual wages of retail workers.
Home Depot, meanwhile, spent $37.9 billion on share buybacks during the same timeframe. This amount could have provided a bonus of $6,13,423 to each of its 470,100 global employees. The median pay at Home Depot is just $35,196.
CEOs, workers, and wage rates
A report by Madison Trust assessed S&P 500 companies and ranked them based on CEO-to-worker pay ratios. The average ratio for these companies stood at 268 to 1.
In first place was Ross Dress for Less, where CEO Barbara Rentler earned $18,094,944, while the median worker income was $8,618.
Coca-Cola CEO James Quincey ranked second, with a salary of $24,742,908 against an employee median of $13,752, resulting in a staggering 1,799:1 ratio.
At Charter Communications, CEO Christopher L. Winfrey earned $89,077,078, with an average employee pay of $54,476, creating a ratio of 1,635:1.
Aptiv ranked fourth at a 1,545:1 ratio due to CEO Kevin P. Clark’s compensation of $18,000,136, while the average worker’s pay was just $11,647.
Completing the top five, Accenture PLC’s CEO Julie Sweet earned $31,550,906 compared to the average employee’s $20,670.
It’s hard to determine what constitutes fair compensation for CEOs, but performance-based incentives are thought to contribute to these staggering numbers. Additionally, corporate committees significantly influence how CEOs are compensated, and if the competition for executive talent remains high, salaries may be pushed even higher to attract the best candidates.
Rolling in the deep
Yet, should CEOs really be making exorbitant amounts while employees struggle below them?
Many workers surveyed indicated that companies with significant wage disparities should face consequences.
Furthermore, 80% expressed support for increased taxes on businesses where CEOs earn 50 times or more than their median employees.
A recent survey from FlexJobs found that 80% of respondents believed their CEOs were overpaid.
Conducted in February 2025, the survey gathered insights from over 2,200 U.S. workers, revealing that nearly 70% felt their CEOs could not adequately handle their jobs.
From concerns over pay to skepticism about leadership, employees often feel undervalued. FlexJobs career expert Toni Frana characterized this situation as a growing divide in the workplace.
“There’s a widening gap between leadership expectations and employee needs, like fair wages and flexible working conditions,” she noted. “Instead, workers are facing big layoffs and strict office policies.”
If your goal is to earn more in 2026, consider checking out the job opportunities available.
