“Fair” is a subjective term when it comes to compensation. Does someone whose leadership drives a company’s stock price to new heights deserve compensation that’s exponentially higher than the people working for him or her? Sometimes, perhaps.
At some point, though, the ratio between pay for folks at the top of the org chart and the rank-in-file becomes a little harder to defend. The overall compensation of quite a few U.S. executives last year was a multiple of several thousand times higher than that of the typical worker’s. Does that seem reasonable to you? There are caveats, of course: At some large multinationals, employee pay might reflect a significant number of workers who are employed overseas in emerging markets.
Other companies may have a large seasonal workforce, or many employees working in part-time and low-level sales positions, which can skew the median salary lower. It’s also fair to point out that some CEOs are also founders, and are reaping the rewards of starting their own business (though only one CEO on this list founded the company). As well, CEO compensation packages include performance-based stock options that accrue greater value only when a company’s performance is excellent, at least in Wall Street’s view.
But in an era of economic uncertainty—and one in which mass layoffs have become a common management tool—more company stakeholders, investors and workers alike, are raising questions about the yawning CEO-to-worker pay gap. (For comparison, you can also see the list of the 15 most fairly paid CEOs or a searchable list of the data for more than 2,000 companies in total.)
As part of this special report, SEC compliance and disclosure intelligence company MyLogIQ has complied this list of the 15 companies on the Russell 3000 Index with the largest gap between the CEO and the media worker, based on reported 2022 total compensation:
1: NuSkin Enterprises (NUS)
CEO: Ryan Napierski
2022 Compensation: $4,764,466
Median employee salary: $506
Pay ratio: 9,416:1
Napierski had a base salary of just $900,000 last year, but saw his total compensation soar to nearly $4.8 million thanks to cash and stock bonuses. That’s 9,416 times more than the median employee salary at NuSkin, which comes in at just $506. Why so low? NuSkin is a multilevel-marketing company, specializing in personal care products and dietary supplements and while it promises its employees they will get rich, they only make an average of $506.
2: Live Nation Entertainment (LYV)
CEO: Michael Rapino
2022 Compensation: $139,005,565
Median employee salary: $25,673
Pay ratio: 5,414: :1
Rapino’s company had a very good year—and his salary reflects that. His 2022 compensation came out to more than $139 million (some 5,414 times more than the median employee salary), due in large part to the $116 million in new stock awards he got as part of his new five-year contract. While TicketMaster didn’t make any friends with its handling of the Taylor Swift ticket fiasco, her Eras Tour still provided a windfall for the company. And with tickets to the European leg of the tour now on sale, 2023 isn’t looking bad for Live Nation—or Rapino's pay.
3: Hertz Global Holdings (HTZ)
CEO: Stephen M. Scherr
2022 Compensation: $182,780,923
Median employee salary: $36,683
Pay ratio: 4,983::1
Scherr’s compensation of $182.8 million—which is 4,983 times that of the median employee—makes him the highest-paid executive on this list, by a margin of more than over $40 million. The majority of Scherr’s package comes in the form of vested stock options, as his new contract front-loads company stock. After nearly two decades as a Goldman Sachs executive (including several as the company's chief financial officer), he has been tasked with steering the rental car company after it completed its bankruptcy in 2022.
4: Abercrombie & Fitch (ANF)
CEO: Fran Horowitz
2022 Compensation: $11,034,157
Median employee salary: $3,383
Pay ratio: 3,262:1
Though she still ranks highly on this list, CEO Fran Horowitz actually saw her compensation go down this year. A proxy statement from the company shows she took in 14.1% less than in 2022 she did the year before, but at more than $11 million, she’s still making 3,262 times as much as the store’s average employee, a figure which includes part-time, temporary, and seasonal workers. Horowitz has headed the company since 2017, overseeing its digital transition and making the once-struggling retailer cool again.
5: Universal Corp. (UVV)
CEO: George C. Freeman III
2022 Compensation: $4,832,074
Median employee salary: $2,004
Pay ratio: 2,411:1
Despite sharing a name with the film studio, this Universal has nothing to do with Hollywood. Instead, it’s a supplier of leaf tobacco, which it sells to cigarette companies (its largest customer is Philip Morris), While the company's financial were mostly flat in 2022, Freeman took home more than $4.8 million last year, 2,411 times more than the median employee, many of whom are seasonal workers.
6: Mattel (MAT)
CEO: Ynon Kreiz
2022 Compensation: $11,890,387
Median employee salary: $5,525
Pay ratio: 2,152:1
Kreiz’s 2022 compensation of $11.9 million is high, but the 2023 numbers could be even higher, thanks to the phenomenal success of the Barbie movie. This master of the toy universe has overseen the company’s expansion into the cinematic world, with upcoming projects including Hot Wheels, American Girl, and even View-Master. Does that justify income that’s 2,152 times the salary of the median employee, most of whom work overseas in factories?
7: Skechers USA (SKX)
CEO: Robert Greenberg
2022 Compensation: $22,040,775
Median employee salary: $10,559
Pay ratio: 2,087:1
Revenue and profits were up by double digits at the sneak company last year, so as founder and CEO Greenberg has certainly reaped the benefits. That might explain why his $22 million in income last year is 2,087 times higher than the median employee (which includes overseas workers, who make up more than 52% of the company’s workforce).
8: Jabil (JBL)
CEO: Mark T. Mondello
2022 Compensation: $16,435,268
Median employee salary: $8,131:1
Pay ratio: 2,021
St. Petersberg-based global manufacturing company Jabil may not be a name many consumers recognize, but its factories and supply-chain solutions help create everything from cell phones to coffee machines. Mondello is compensated handsomely for that behind-the-scenes work, making over $16.4 million last year, compared to a median employee salary of $8,131 (the company has a substantial portion of its 250,000 person workforce in overseas locations).
9: Aptiv (APTV)
CEO: Kevin P. Clark
2022 Compensation: $16,206,621
Median employee salary: $8,139
Pay ratio: 1,991:1
Clark has only been steering Aptiv—which makes sensors, software, and other components for the automotive industry—for the past year, but he’s been a part of the company since 2010, when he signed on as chief financial officer. The company has seen solid financials as part of the EV boom, and the vast majority of Clark's compensation last year came in stock, making his total compensation was 1,991 times higher than what the median employee—many of whom make minimum wage—takes home.
10: Coca-Cola (KO)
CEO: James Quincey
2022 Compensation: $22,822,519
Median employee salary: $12,122:1
Pay ratio: 1,883
He runs the world’s largest soda company, but Quincey’s compensation is regularly decried by activists as excessive. An Institutional Shareholder Services (ISS) report at the start of 2023 opposed his pay package, which awards him 1,883 times the median employee salary (as determined by total global workers, not just those based in the U.S.).
11: Under Armour (UAA)
CEO: Stephanie Linnartz
2022 Compensation: $16,868,343
Median employee salary: $9,031
Pay ratio: 1,868:1
As head of one of the leading athletic performance brands, Linnartz saw a pay package which included $11 million in stock rewards last year (she was hired from Mariott in early 2023; Under Armour's fiscal year includes part of her tenure and salary in its 2022 filings for the purposes of calculating its 2022 ratio). That’s a 1,868 times more than the people working for her, but there was a lot of work to be done. Under her leadership, the once struggling brand has secured a $100 million licensing extension with Notre Dame (that’s believed to be the richest such deal in college sports), begun focusing on women’s products, and struck a long-term deal with NBA superstar Stephen Curry.
12: Lear Corp. (LEA)
CEO: Raymond E. Scott
2022 Compensation: $15,376,344
Median employee salary: $8,943
Pay ratio: 1,719:1
Scott, whose company manufactures seating and electrical systems for cars, is the fifth highest paid CEO in the company's home state of Michigan. But with a pay ratio 1,719 times that of his workers (94% of whom work outside of the U.S.), his compensation package—most of which ($11.1 million) is in stock awards—has often come up for criticism in the local press.
13: Kontoor Brands (KTB)
CEO: Scott H. Baxter
2022 Compensation: $11,412,428
Median employee salary: $6,920
Pay ratio: 1,649:1
The head of two of the world’s oldest jean brands, Wrangler and Lee, Baxter’s challenge of late has been keeping both brands cool. Sales have grown 10% and 8% respectively in the past year, as the company has targeted Generation Z. That earned him $11.4 million last year, considerably more than the under-$7,000 median employee salary (the company has 9,800 employees in Latin America and Mexico performing manufacturing and production-based roles).
14: Yum Brands (YUM)
CEO: David W. Gibbs
2022 Compensation: $16,671,654
Median employee salary: $10,398:1
Pay ratio: 1,603
Prices at Taco Bell, KFC, and Pizza Hut spiked last year, and the company hasn’t ruled out additional increases this year (though it says they would only be implemented as a “last resort”). While some competitors have struggled, Yum has added thousands of stores worldwide over the past two years, which helps explain Gibbs' $16 million compensation package, which is vastly larger than what the average employee (including both global and part-time workers) takes home.
15: TJX Companies (TJX)
CEO: Ernie Herrman
2022 Compensation: $20,525,368
Median employee salary: $13,884
Pay ratio: 1,478:1
You’d expect a wage gap between a CEO and a worker in a discount clothing store, but Herrman’s salary is 1,478 times that of the median employee (including international, seasonal, temporary, and full- and part-time workers) at the parent company of TJ Maxx and Marshall’s. That comes as the retailer has managed to meet earnings expectations and increase revenue, bucking broader retail sales trends.
This story is part of Fast Company's CEO Fair Pay Report; click here to read the whole series.
Recognize your brand’s excellence by applying to this year’s Brands That Matter Awards before the final deadline, June 7.
Sign up for Brands That Matter notifications here.
