Document Type
Thesis
Abstract
This paper analyzes the CEO to minimum wage compensation ratio between 2010-2023 in the United States. By assessing reported compensation of 30 certain disciplined U.S. publicly traded companies in the 2023 Fortune 500 and with total compensation for CEOs disclosed through the Securities and Exchange Commission (SEC) filings (DEF 14A), a comparative ratio and significance study adjusted for inflation occurs. While average CEO compensation remained consistent in real value, the average CEO to minimum wage compensation ratio was above 1,000:1 for a majority of the companies and over 2,000:1 for a select few by 2023. These results indicate that the equity between these two positions does not reflect competitive markets or performance, but rather, misguided corporate governance, stock-based overstimulation, and a static federal government's approach to wage offerings. Proposed policy changes include raising minimum wages, instituting required CEO pay ratios, and increased union and labor protections. Absent any changes to policy, equity within the workforce will remain unbalanced with no hope for rectification. The findings support the managerial power hypothesis and contribute to the already extensive literature championing change for executive compensation.
Recommended Citation
OCallaghan, Kayla D. and Anakwe, Uzoamaka, "Eat the rich? Eat the poor: the growing disparity between corporate greed, CEO pay, and minimum wage stagnation" (2025). Honors College Theses. 397.
https://digitalcommons.pace.edu/honorscollege_theses/397
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