Very few people have heard of Aptiv, which makes auto parts. However, it is the American company that pays its workers the least — a shocking $5,906 a year. That is sharply below companies like McDonald’s, where the figure is close to $24,000, based on an hourly wage of $13. McDonald’s is often listed as having among the lowest-paying jobs in America.
The Aptiv data comes from MyLogIQ, which provided that information to The Wall Street Journal:
According to the SEC, the Aptiv CEO got a huge pay package compared to employees. It disclosed in its DEF14A: The Median Employee’s annual total compensation is $5,906. When compared to our CEO’s annual total compensation of $31,267,329 (which is the total compensation reported for him in the 2020 Summary Compensation Table for 2020), the ratio of the total annual compensation of our CEO to the total annual compensation of our Median Employee was approximately 5,294:1.
Aptiv’s chief executive officer is Kevin P. Clark, and the company has over 150,000 employees. Raj Gupta, chair of the compensation committee, commented, “Our management team demonstrated exceptional performance throughout this unprecedented year by taking early and decisive actions to put the safety and welfare of our employees first, while preserving and enhancing the Company’s financial flexibility.” That clearly did not include paying them well.
Aptiv makes a huge amount of money. According to its annual report in 2020, revenue was $13.1 billion and earnings totaled $1.94 per share. Aptiv was once part of Delphi Automotive. After it was spun out, the company described itself as a “technology company that develops safer, greener and more connected solutions for a diverse array of global customers.” Among the ironies of the Aptiv pay levels for employees is that tech companies often offer among the highest pay packages in the world. From that standpoint, it is a true outlier.