The Institute for Policy Studies reports that in 2025, CEOs at the 100 lowest-paying corporations in the U.S. earned an average of 614 times more than their employees, underscoring the growing issue of income inequality.
The Institute for Policy Studies (IPS) has released a report indicating that the average CEO of the 100 largest, lowest-paying corporations in the United States earned 614 times more than their average worker in 2025. This alarming statistic highlights the widening income inequality in corporate America and raises essential questions about the ethical implications of such disparities.
The IPS report, which examines executive compensation trends, reveals that CEO pay among these companies has escalated by 41.4% between 2019 and 2025, unadjusted for inflation. In contrast, median worker pay at these firms experienced a more modest increase of only 20.7% during the same timeframe. When inflation, which rose by 25.9%, is factored in, the real purchasing power of workers has effectively declined, further emphasizing the growing divide between executive and worker compensation.
CEO Compensation Trends
In 2025, the average total compensation for CEOs at these low-wage corporations was approximately $17.5 million, while the median pay for workers was $36,571. This significant disparity in compensation has raised considerable concerns among labor advocates and economists, particularly as the ratio of CEO pay to worker pay increased by 8.4% during the same period. The disparity between executive and worker compensation raises questions about the sustainability of such economic structures and the long-term implications for corporate culture and employee morale.
Among the 100 lowest-paying corporations, the IPS report identifies at least 36 billionaires connected to these firms, including members of the Walton family (associated with Walmart), Jeff Bezos of Amazon, and Carvana co-founders Ernie Garcia II and III. Sarah Anderson, the lead author of the report and director of the Global Economy Project at IPS, emphasized the severity of this issue, stating, “This is really a big problem for society, that we have such extremes.”
Disconnect Between Executives and Workers
Anderson further articulated the disconnect between CEOs and their employees, highlighting the challenges many workers face in their daily lives. “To me, it seems like these CEOs are just living on a remote economic planet from the one that their employees are living on,” she remarked. The report underscores the growing concerns among low-wage workers, who often struggle to provide for their families while facing additional challenges, such as the threat of deportation and aggressive immigration enforcement.
Moreover, the report notes that the low-wage 100 corporations collectively employ 1,282 registered federal lobbyists, raising questions about the political influence these companies wield. Many of these corporations have not publicly denounced aggressive immigration enforcement actions that disproportionately affect their workforce. Anderson pointed out that low-wage workers are currently facing the largest cuts to Medicaid and Supplemental Nutrition Assistance Program (SNAP) benefits in history, further intensifying their reliance on government assistance programs.
Corporate Spending and Stock Buybacks
The IPS analysis also highlights significant trends in corporate spending, particularly in stock buybacks. In 2025, stock buybacks among these low-wage corporations increased to $108.6 billion, up from $105 billion in 2024. Between 2019 and 2025, these firms spent a staggering $718 billion on stock buybacks, a financial strategy often criticized for prioritizing shareholder returns over employee welfare.
Walmart, the largest low-wage employer in the U.S., notably led the way in stock buybacks, allocating $8.1 billion in 2025 alone. This amount equates to a potential bonus of $3,851 for each of Walmart’s approximately 2.1 million employees. In stark contrast, Walmart’s CEO, Doug McMillan, who stepped down in January 2026, received $29.2 million in compensation for 2025, representing 958 times the median worker pay at Walmart, which stands at $30,520. These figures exemplify the stark imbalance in corporate compensation structures and raise ethical questions about priorities within these organizations.
Policy Recommendations to Address Income Inequality
In light of the significant income disparities highlighted in the report, IPS proposes several policy solutions aimed at curbing excessive executive pay. These recommendations include introducing a tax increase on corporations that compensate their CEOs more than 50 times the median employee wage, increasing taxes on stock buybacks, and leveraging government contracts and subsidies to prevent contractors from engaging in stock buybacks. These measures aim to create a more equitable economic environment and address the pressing issue of income inequality in the corporate sector.
Despite the gravity of these findings, Walmart did not respond to multiple requests for comment regarding the report’s conclusions. As the conversation surrounding income inequality and corporate accountability continues to evolve, the IPS report serves as a critical reminder of the ongoing challenges faced by low-wage workers in the United States. The implications of these disparities extend beyond individual corporations, potentially influencing broader economic policies and social dynamics in an increasingly divided society.
