The U.S. Securities and Exchange Commission has long required public corporations to disclose the compensation of their top officers. The debate about whether chief executive officers are paid too much has gone on for decades. Many investors object to high CEO pay, which often runs into the tens of millions of dollars. Boards of directors claim that good CEOs are hard to find and that they have responsibilities for tens of thousands or even hundreds of thousands of workers.
Last year, the CEO of McDonald’s, Christopher Kempczinski, made 1,189 times the median compensation of his workers, according to an exclusive analysis of the pay of 294 public company CEOs done by MyLogIQ, which uses artificial intelligence and machine learning to examine SEC data. Kempczinski’s total pay was $10,847,032 in 2020. The company’s proxy stated, “McDonald’s is committed to a strong pay-for-performance culture that closely aligns the interests of executives with those of shareholders.”
While Kempczinski made over $10 million, the company had a very rough year. McDonald’s revenue fell by 10% to $19.2 billion. The drop in net income was much worse, down 21% to $4.7 billion.
McDonald’s investors took a beating, too. Shares were up only 7% last year, while the S&P 500 saw a gain of 15%.
Kempczinski’s $10.8 million compensation also has to be viewed in contrast to what McDonald’s workers make. Job site Indeed estimates the hourly pay of crew members and cooks at below $10. Employment site Glassdoor’s hourly pay estimate is similar. In each case, these pay levels can put employees below the poverty level.
The McDonald’s board can argue that Kempczinski skillfully has steered the company through the pandemic. However, that 1,189 times figure is incredible.
In spite of this large disparity, there are half a dozen other CEOs running S&P 500 companies in 2020 that had an even higher pay ratio compared to the median employee compensation. To determine the CEOs that made the most money compared to their workers, 24/7 Wall St. reviewed data from MyLogIQ on the ratio of S&P 500 CEOs compensations compared to the median compensation of their employees. In all, 30 CEOs had compensation at least 400 times higher than the median employee compensation in 2020.
Click here to see McDonald’s CEO Made 1,100 Times What His Workers Did.
Source: mjtmail / Flickr
30. Colgate Palmolive Co
> CEO: Noel R. Wallace
> CEO pay ratio: 400x higher than the median employee
> CEO compensation: $14,364,118
> Median employee compensation: $35,940
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Source: JHVEPhoto / iStock Editorial via Getty Images
29. Accenture PLC
> CEO: Julie Sweet
> CEO pay ratio: 402x higher than the median employee
> CEO compensation: $17,184,847
> Median employee compensation: $42,794
24/7 Wall St.
Source: Courtesy of ViacomCBS
28. ViacomCBS Inc.
> CEO: Robert M. Bakish
> CEO pay ratio: 411x higher than the median employee
> CEO compensation: $38,995,655
> Median employee compensation: $94,989
Source: Joe Raedle / Getty Images
27. CVS Health Corp
> CEO: Larry J. Merlo
> CEO pay ratio: 414x higher than the median employee
> CEO compensation: $23,057,647
> Median employee compensation: $55,716
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Source: violinconcertono3 / iStock Editorial via Getty Images
26. Citigroup Inc
> CEO: Michael Corbat
> CEO pay ratio: 420x higher than the median employee
> CEO compensation: $22,993,609
> Median employee compensation: $54,718
Source: spooh / E+ via Getty Images
25. Transdigm Group Inc
> CEO: Kevin M. Stein
> CEO pay ratio: 423x higher than the median employee
> CEO compensation: $22,060,463
> Median employee compensation: $52,202
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Source: Sundry Photography / iStock Editorial via Getty Images
24. TE Connectivity LTD.
> CEO: Terrence R. Curtin
> CEO pay ratio: 424x higher than the median employee
> CEO compensation: $10,569,225
> Median employee compensation: $24,916
24/7 Wall St.
Source: Sundry Photography / iStock Editorial via Getty Images
23. Autozone Inc
> CEO: William C. Rhodes III
> CEO pay ratio: 431x higher than the median employee
> CEO compensation: $11,531,361
> Median employee compensation: $26,759
Source: Fotoatelie / iStock Editorial via Getty Images
22. PepsiCo Inc
> CEO: Ramon L. Laguarta
> CEO pay ratio: 462x higher than the median employee
> CEO compensation: $21,486,982
> Median employee compensation: $46,546
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Source: KenWiedemann / iStock Unreleased via Getty Images
21. Carnival Corp
> CEO: Arnold W. Donald
> CEO pay ratio: 490x higher than the median employee
> CEO compensation: $13,306,097
> Median employee compensation: $27,151
Source: Sundry Photography / iStock Editorial via Getty Images
20. Walgreens Boots Alliance, Inc.
> CEO: Stefano Pessina
> CEO pay ratio: 524x higher than the median employee
> CEO compensation: $17,483,187
> Median employee compensation: $33,396
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Source: andresr / Getty Images
19. HCA Healthcare, Inc.
> CEO: Samuel N. Hazen
> CEO pay ratio: 556x higher than the median employee
> CEO compensation: $30,397,771
> Median employee compensation: $54,651
Source: Courtesy of McCormick & Co Inc
18. McCormick & Co Inc
> CEO: Lawrence E. Kurzius
> CEO pay ratio: 585x higher than the median employee
> CEO compensation: $19,546,334
> Median employee compensation: $33,387
Source: Courtesy of S&P Global Inc.
17. S&P Global Inc.
> CEO: Douglas L. Peterson
> CEO pay ratio: 595x higher than the median employee
> CEO compensation: $15,077,269
> Median employee compensation: $25,324
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16. Tractor Supply Co
> CEO: Harry A. Lawton III
> CEO pay ratio: 654x higher than the median employee
> CEO compensation: $15,812,073
> Median employee compensation: $24,437
Source: Wikimedia Commons
15. Charter Communications, Inc.
> CEO: Thomas M. Rutledge
> CEO pay ratio: 687x higher than the median employee
> CEO compensation: $38,846,705
> Median employee compensation: $56,568
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Source: Courtesy of Wynn Resorts LTD
14. Wynn Resorts LTD
> CEO: Matt Maddox
> CEO pay ratio: 721x higher than the median employee
> CEO compensation: $24,571,980
> Median employee compensation: $34,104
Source: Courtesy of Copart - https://www.copart.com/, Public Domain, https://commons.wikimedia.org/w/index.php?curid=94905396
13. Copart Inc
> CEO: Jayson A. Adair
> CEO pay ratio: 727x higher than the median employee
> CEO compensation: $25,776,922
> Median employee compensation: $35,448
Source: Courtesy of Avery Dennison Corp
12. Avery Dennison Corp
> CEO: Mitchell R. Butier
> CEO pay ratio: 760x higher than the median employee
> CEO compensation: $8,709,348
> Median employee compensation: $11,460
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Source: sen_meister / Flickr
11. Whirlpool Corp
> CEO: Marc R. Bitzer
> CEO pay ratio: 772x higher than the median employee
> CEO compensation: $17,064,835
> Median employee compensation: $22,113
Source: jetcityimage / iStock Editorial via Getty Images
10. Dollar General Corp
> CEO: Todd J. Vasos
> CEO pay ratio: 986x higher than the median employee
> CEO compensation: $16,452,823
> Median employee compensation: $16,688
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Source: Photo by Tim Boyle / Getty Images
9. Hanesbrands Inc.
> CEO: Stephen B. Bratspies
> CEO pay ratio: 1,056x higher than the median employee
> CEO compensation: $7,287,515
> Median employee compensation: $6,900
Source: Sundry Photography / iStock Editorial via Getty Images
8. Under Armour, Inc.
> CEO: Patrik Frisk
> CEO pay ratio: 1,104x higher than the median employee
> CEO compensation: $7,365,232
> Median employee compensation: $6,669
Source: ricote / Flickr
7. McDonald’s Corp
> CEO: Christopher J. Kempczinski
> CEO pay ratio: 1,189x higher than the median employee
> CEO compensation: $10,847,032
> Median employee compensation: $9,124
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Source: DKart / Getty Images
6. Starbucks Corp
> CEO: Kevin R. Johnson
> CEO pay ratio: 1,211x higher than the median employee
> CEO compensation: $14,665,575
> Median employee compensation: $12,113
Source: Michael Vi / iStock Editorial via Getty Images
5. Skyworks Solutions, Inc.
> CEO: Liam K. Griffin
> CEO pay ratio: 1,271x higher than the median employee
> CEO compensation: $21,800,439
> Median employee compensation: $17,148
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Source: Wikimedia Commons
4. Yum Brands Inc
> CEO: David W. Gibbs
> CEO pay ratio: 1,286x higher than the median employee
> CEO compensation: $14,631,451
> Median employee compensation: $11,377
24/7 Wall St.
Source: jetcityimage / iStock Editorial via Getty Images
3. General Electric Co
> CEO: H. Lawrence Culp, Jr
> CEO pay ratio: 1,357x higher than the median employee
> CEO compensation: $73,192,032
> Median employee compensation: $53,928
Source: Sundry Photography / iStock Editorial via Getty Images
2. Coca Cola Co
> CEO: James Quincey
> CEO pay ratio: 1,621x higher than the median employee
> CEO compensation: $18,383,474
> Median employee compensation: $11,342
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Source: Sundry Photography / iStock Editorial via Getty Images
1. Aptiv PLC
> CEO: Kevin P. Clark
> CEO pay ratio: 2,279x higher than the median employee
> CEO compensation: $13,460,707
> Median employee compensation: $5,906
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