James Johnson
AFL-CIO’s Executive Paywatch reveals historic pay disparity as CEO compensation surges across corporate America in 2024
In a stark reflection of growing economic inequality, a new report reveals that Starbucks CEO Brian Niccol earned 6,666 times more than the company’s typical worker in 2024—marking the widest CEO-to-worker pay gap among the 500 largest public companies in the United States.
According to the AFL-CIO’s annual Executive Paywatch report, released Wednesday, Niccol received nearly $98 million in total compensation last year. Meanwhile, the median Starbucks employee—typically a part-time barista—earned under $15,000. The report drew from corporate filings with the U.S. Securities and Exchange Commission (SEC).
Niccol, who officially stepped into the CEO role last September, presides over a global workforce of approximately 361,000 employees, many of whom work flexible, part-time shifts, which significantly impacts median pay calculations. Roughly 210,000 of these workers are based in the U.S.
The AFL-CIO, a federation representing 15 million workers through affiliated labor unions, emphasized the growing chasm between executive compensation and everyday wages. “It’s no wonder why the workers there at Starbucks are fighting to form a union with the Starbucks Workers United to improve their pay and working conditions,” said Fred Redmond, secretary-treasurer of the AFL-CIO. “These numbers only begin to scratch the surface of how runaway executive pay is fueling economic inequality.”
Indeed, CEO pay across the S&P 500 rose 7% in 2024, with top executives earning an average of $18.9 million—or 285 times the pay of the typical U.S. worker, whose annual earnings averaged $49,500. By comparison, that ratio stood at 268 to 1 in 2023.
The report adds a startling visual to the disparity: the average worker would have had to start earning wages in the year 1740 to match a single year of 2024 compensation for a typical CEO.
The highest-paid CEO among the S&P 500 was Patrick Smith of Axon Enterprise, the company behind Taser weapons and other law enforcement technologies, who pulled in nearly $165 million.
The AFL-CIO also spotlighted the unequal impact of recent tax legislation. Under the newly passed GOP tax and spending cuts package, which extended provisions from former President Donald Trump’s 2017 Tax Cuts and Jobs Act, the average CEO is set to receive a tax break of approximately $490,000. In stark contrast, the typical U.S. worker stands to gain just $765 from the same package.
While cash salaries comprise only a portion of CEO pay, much of the remaining compensation comes in the form of restricted stock awards and multimillion-dollar performance bonuses, further widening the gap between executives and rank-and-file employees.
Starbucks has not yet responded to requests for comment regarding the report’s findings.
In recent years, Starbucks employees—many of whom are part-time workers—have mobilized under the Starbucks Workers United banner, staging strikes and organizing to demand higher wages and better workplace conditions. This report is likely to add further momentum to the growing calls for corporate accountability and fairer labor practices across the U.S.
