CEO Pay Soars While Workers Lag Behind: Addressing the Global Pay
A recent surge in CEO pay has reignited global concern over widening income inequality, as new data reveals executive compensation has skyrocketed while average workers’ wages remain virtually stagnant.
According to Oxfam’s latest research, average global CEO pay reached a staggering $4.3 million in 2024—a 50% increase in real terms since 2019. This is in stark contrast to the average worker, whose pay has grown by a meagre 0.9% over the same period.
The divide is particularly pronounced in countries like Ireland and Germany, where CEOs earned an average of $6.7 million and $4.7 million respectively in 2024. Even in emerging economies, such as South Africa and India, CEO compensation remains significantly high, at $1.6 million and $2 million respectively.
These figures paint a troubling picture, especially against the backdrop of persistent cost-of-living crises. In many regions, wage growth for ordinary employees continues to fall short of inflation, leaving many households financially strained despite ongoing economic recovery efforts.
Oxfam’s findings highlight the scale of the disparity: billionaires amassed an average of $206 billion in new wealth in the last year alone—equivalent to an eye-watering $23,500 per hour. This hourly figure dwarfs the global average annual income of just $21,000.
Amitabh Behar, Executive Director of Oxfam International, summed up the situation with stark clarity: “Year after year, we see the same grotesque spectacle: CEO pay explodes while workers’ wages barely budge.”
Supporting these concerns, the International Labour Organisation (ILO) reported that global real wage growth was only 2.7% in 2024. In countries such as France, South Africa, and Spain, this figure dropped to a mere 0.6%—barely enough to offset basic living cost increases.
Luc Triangle, General Secretary of the International Trade Union Confederation (ITUC), echoed Oxfam’s concerns. “The outrageous pay inequality between CEOs and workers confirms that we lack democracy where it is needed most: at work,” he said.
Reassessing Corporate Pay Strategies
This growing disparity raises urgent questions for businesses, HR leaders, and policymakers. As scrutiny of executive compensation intensifies, organisations may be forced to justify their pay structures and prioritise more equitable distribution of wealth across all levels of employment.
Progressive businesses are increasingly exploring ways to align compensation more fairly, including:
• Linking CEO pay more closely to workforce-wide performance outcomes
• Introducing employee representation on remuneration committees
• Implementing pay ratio disclosures and transparency policies
• Offering broader equity or profit-sharing schemes to frontline staff
A Wake-Up Call for Reward Professionals
For those working in reward and compensation strategy, the message is clear: social fairness must now be part of the corporate reward conversation. Failing to address pay equity not only damages employee trust and morale but can also lead to reputational harm and decreased organisational performance.
As public and political pressure continues to mount, now is the time for organisations to reassess how they define value—and ensure that the people driving day-to-day business success are adequately recognised and rewarded.
If left unchecked, the current pay chasm risks not only fuelling inequality but also destabilising the very workforce organisations depend upon to thrive in a rapidly changing world.