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Want To Earn What Your CEO Makes? 5 Shocking Truths About Your Paycheck Differences
Yahoo Financeยท 2025-09-15 14:55
Core Insights - In 2024, Starbucks CEO Brian Niccol received a total compensation of $95.8 million, highlighting a significant disparity between executive pay and average worker wages [1][2] - The average Starbucks barista earns approximately $15 per hour, indicating a stark contrast in earnings between the CEO and frontline employees [1] - The CEO-to-worker pay ratio at Starbucks is in the thousands, reflecting a broader trend across various industries where such gaps are prevalent [3][4] Pay Disparity - The average CEO in the S&P 500 earned $18.9 million in 2024, while the average worker made just over $60,000, resulting in a CEO-to-worker pay ratio of 285:1 [4] - In low-wage sectors like retail and food service, the pay gap can reach into the thousands, with some companies reporting ratios as high as 6,000-to-1 [3][5] Compensation Structure - CEO compensation often includes various components beyond base salary, such as stock options, performance bonuses, and equity awards, which can significantly inflate total earnings [6][7] - In Niccol's case, the majority of his nearly $96 million compensation was derived from stock awards, illustrating how stock performance can heavily influence executive pay [6]