On International Workers’ Day, a new global analysis from Oxfam International has revealed a staggering disparity between corporate executives and the employees who drive their profits. According to the findings, CEO compensation at major corporations has risen by 50 percent since 2019, while average worker wages across the same economies have increased by just 0.9 percent.
Released Thursday to coincide with May Day demonstrations around the world, the report examined nearly 2,000 companies in 35 countries where chief executives earned over $1 million annually in 2024. The average CEO pay across these companies—including base salaries, bonuses, and stock options—reached $4.3 million this year, up from $2.9 million in 2019.
By contrast, the average pay increase for workers in these countries over the same five-year span barely surpassed inflation, resulting in what Oxfam calls a “grotesque spectacle.”
“Year after year, we see the same grotesque spectacle: CEO pay explodes while workers’ wages barely budge,” said Amitabh Behar, Oxfam’s executive director. “This isn’t a glitch in the system—it’s the system working exactly as designed, funneling wealth ever upwards while millions of working people struggle to afford rent, food, and healthcare.”
The 50% increase in executive compensation means CEO earnings have grown 56 times faster than those of the average worker. The disparity was particularly pronounced in wealthier countries: Ireland’s average CEO pay reached $6.7 million, while CEOs in Germany averaged $4.7 million. In contrast, the average CEO in South Africa earned $1.6 million and $2 million in India.
Oxfam’s report also highlighted the explosive growth in billionaire wealth. Over the past year, global billionaires accumulated an average of $206 billion in new wealth—equivalent to $23,500 per hour. That hourly increase in wealth exceeds the global average annual income, which stood at $21,000 in 2023.
“Around the world, workers are being denied the basics of life while corporations pocket record profits, dodge taxes, and lobby to evade responsibility,” said Luc Triangle, general secretary of the International Trade Union Confederation. “Workers are demanding a New Social Contract that works for them—not the billionaires undermining democracy. Fair taxation, strong public services, living wages, and a just transition are not radical demands—they are the foundation of a just society.”
Despite modest improvements in global wage growth in 2024—estimated by the International Labour Organization at 2.7 percent—Oxfam’s data suggest that workers in many nations continue to struggle. Countries such as France, South Africa, and Spain saw real wage growth of just 0.6 percent last year. Wage inequality remains stark, particularly in lower-income countries where the richest 10 percent earn 3.4 times more than the bottom 40 percent combined.
Gender disparities in executive compensation were also exposed in the report. Of the 45,501 corporations analyzed where CEO earnings exceeded $10 million and gender data was available, fewer than 7 percent had female CEOs.
In addition to highlighting the pay gap, the report raised concerns about emerging economic threats to the working class, including a resurgence of protectionist trade policies in the United States. Specifically, Oxfam warned that former President Donald Trump’s tariff regime could pose new dangers to workers globally, particularly in developing nations.
“The global working class is now facing a new threat,” the report warned. “These policies pose significant risks for workers worldwide, including job losses and rising costs for basic goods that would stoke extreme inequality everywhere.”
Behar was particularly direct in criticizing the potential return of Trump-era trade measures. “For so many workers worldwide, President Trump’s reckless use of tariffs means a push from one cruel order to another: from the frying pan of destructive neoliberal trade policy to the fire of weaponized tariffs,” he said. “These policies will not only hurt working families in the U.S., but especially harm workers trying to escape poverty in some of the world’s poorest countries.”
In response to the findings, Oxfam is calling for systemic reforms to address economic inequality, beginning with a top marginal tax rate of at least 75 percent on the ultra-wealthy. The organization also advocates for wage reforms to ensure that worker pay increases in line with inflation and productivity.
The International Trade Union Confederation joined that call, urging governments to implement measures that would guarantee a fairer distribution of wealth and power. “It’s time to end the billionaire coup against democracy and put people and planet first,” Triangle said.
As demonstrations took place across the globe on May Day, labor organizers, economists, and civil society groups emphasized that closing the gap between worker and executive pay is central to restoring social and economic justice.
Oxfam’s findings offer a stark reminder that for all the rhetoric about shared prosperity, the wealth produced by workers continues to concentrate at the very top. Without policy intervention, the economic structures driving this disparity are likely to become even more entrenched.
COMMENTS