Tuesday, September 2, 2014
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Fast-food CEO salaries skyrocket while their employees enroll in public assistance

A new report out shows that the gap between how much a fast food employee makes and how much the CEO of a fast food company makes is bigger than every before.

Posted on April 24, 2014 at 1:48 p.m.

While the CEOs of fast food companies have quadrupled their salaries since 2000, 52 percent of fast-food workers' families are enrolled in at least one public assistance program, as reported by NPR.

A report from public policy group Demos found that the CEO of YUM!, which owns Pizza Hut, Taco Bell and KFC, earned a total $22,050,180 in 2013.

The report looked at total compensation for CEOs, including salary, incentive compensation, stock awards and benefits options exercised.

In the same year, the average hourly wage of a fast food employee was $9.09, which would be $18,907 in a year for a full-time woker, Demos reported.

The disparity has been growing for years. Demos found that in 2012, the CEOs of fast food companies earned an average of $1,203 for every $1 their hourly employees earned. In 2002, CEOs earned $494 for every $1 earned by hourly employees.

A report released by UC Berkeley's Labor Center in October 2013 showed that 52 percent of front-line fast food workers were enrolled in, or have their families enrolled in, one or more public assistance programs, such as SNAP, NPR reported.

“The taxpayer costs we discovered were staggering,” said Ken Jacobs, chair of UC Berkeley’s Labor Center and co-author of the report. “People who work in fast-food jobs are paid so little that having to rely on public assistance is the rule, rather than the exception, even for those working 40 hours or more a week.”

Are you concerned with the difference between the earnings of CEOs of fast food companies and their employees?




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