It would take the median Mattel worker nearly five millennia to make what their CEO makes in a year. This vast inequality is not just immoral -- it is a crisis for our democracy.— Rep. Keith Ellison (@keithellison) May 16, 2018
My full report: https://t.co/vgxRZJhxk9 pic.twitter.com/mpbex40CuD
In the first comprehensive study of pay gaps, the people of America are finally getting an insight on which corporations share the wealth with their employees and which do not–all thanks to a Democratic U.S. congressman.
Along with his staff members, Rep. Keith Ellison (D-Minn.) has released a report titled “Rewarding Or Hoarding?” which covers data on nearly 14 million workers at 225 American companieswith total annual revenues of $6.3tn.
The findings of this study offered a startling glimpse into dire pay disparities the country is plagued with currently. For instance, 188 out of the 225 companies analyzed, a salary of a single C.E.O. is sufficient to pay 100 more workers.
"The CEO-worker pay ratio is a dramatic indicator of our country’s extreme economic divide," the report's executive summary reads.
It also shed light on how the C.E.O.-to-worker disparities are worst in industries that are considered to be source of optional consumption for consumers, such as fast food and retail. The gap in the latter is the widest amongst the ones reviewed: 977 to 1 disparity.
For the longest time, big businesses fought the regulation which required them to disclose the wage gaps in the organizations between the C.E.O. and a median worker. It took eight years for the regulation to become a law and still the corporations tried their best to repeal or at least delay complying with it.
But Ellison along with the help of elected officials, investors, and ordinary Americans made sure the pay ratio disclosure rule prevailed.
“Now we know why CEOs didn’t want this data released,” said Ellisonwho is the deputy chairman of the Democratic National Committee “I knew inequality was a great problem in our society but I didn’t understand quite how extreme it was.”
The analysis further revealed that if an employee at 219 of the 225 companies wishes to make what their C.E.O. earns in one year–he will have to work for 45 years to accumulate a similar amount.
This wasn’t it. The figures kept increasing at a staggering rate for different organizations.
For instance, at the toy manufacturing company Mattel, a median employee would have to work for 4,995 years to make the same amount as its C.E.O. makes annually. Likewise, at McDonald’s the employee would have to work for 3,105 years to come close to its C.E.O.’s annual salary.
The report also highlighted how the companies resisted unveiling their discriminatory practices by citing a statement of Public Storage C.E.O. Ronald Havner who believed his work compared to that of a median employee is “not even apples and oranges. It’s more like fruit compared to Star Wars.”
“This immense inequality is a crisis for our economy and our democracy,” the Congressman said in a press statement. “We need legislative action at the local, state and federal level to address it.”
Moreover, Ellison is not only unpopular amongst the corporate America, the Trump administration isn’t so fond of him either. He showed up at a Minnesota May Day parade donning a black T-shirt with the words “Yo no creoenfronteras”, or “I don’t believe in borders.”
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