Salaries of managers soar by a staggering 30-fold over employees' wages.
Germany's CEO salaries are skyrocketing at an alarming rate, according to Oxfam. In 2024, these top dogs are expected to rake in a median of approximately 4.4 million euros, while average workers see a measly 0.7% increase in real wages. This stark contrast has Oxfam calling for a shakeup, advocating for increased taxes on high incomes and a wealth tax.
The gap between CEO salaries and worker wages has broadened significantly over the past five years, with CEO pay rising 30 times faster than typical employee salaries. These staggering figures reveal CEO pay increased an average 21% from 2019 to 2024, while average worker wages only inched up by 0.7%.
Internationally, the trend is even more striking. CEOs earning over $1 million USD saw a 50% increase in pay from 2019 to 2025, landing just shy of $4.3 million USD.
This rising disparity is a serious concern for Oxfam, who believe it's threatening the very fabric of our democracy. Leonie Petersen of Oxfam sums it up: "CEO salaries are diverging so dramatically from regular employee wages that it's becoming increasingly difficult for the average worker to keep up with living costs."
To address this issue, Oxfam proposes a host of solutions. These include progressive taxation targeting billionaires and excess corporate profits, living wage guarantees, corporate governance reforms to cap CEO pay, and public investment in universal healthcare, education, and social safety nets using wealth tax revenues. The goal is to rebalance the system, preparing it to withstand the onslaught of runaway inequality.
Sources:1. Global CEO Compensation Soars, While Worker Wages Stagnate: A Glimpse into Inequality [Article]2. New Report Highlights Growing Inequality, Proposes Solutions [Press Release]3. CEO Pay Tops $20 Million as Worker Wages Stagnate [Infographic]4. Inequality Metrics: A Look at the Global Rich-Poor Divide [Report]5. Addressing Worsening Inequality: Oxfam's Recommendations [Policy Paper]
- By 2025, Germany's CEO salaries are projected to reach an approximately 4.4 million euros median, showing a stark contrast to the average workers' salaries, anticipated to increase only by 0.7%.
- Oxfam estimates that the gap between CEO salaries and worker wages has broadened significantly over the past five years, with CEO pay rising 30 times faster than typical employee salaries.
- Internationally, the trend is even more striking, with CEOs earning over $1 million USD seeing a 50% increase in pay from 2019 to 2025, averaging around $4.3 million USD.
- In light of these worrying figures, Oxfam advocates for increased taxes on high incomes, a wealth tax, and various other solutions to combat the rising disparity, such as progressive taxation and corporate governance reforms to cap CEO pay.
