Income Inequality Update: This Is What The Pay Gap Between Retail CEOs and Store Employees Looks Like
A pay gap between a CEO and an entry level employee is, of course, expected. But new figures show just how wide that pay gap is.
Leading the pack in the biggest pay gap is CVS Caremark CEO Larry Merlo. He makes 422 times more than the median CVS yearly wage of $28,700. He made $12.1 million last year, reported PayScale.
Mike DeAngelis, a spokesman for CVS, said executive pay "closely reflects the company's financial performance and success."
"We are committed to continuing to approach compensation responsibly, appropriately and transparently," he added.
Adding insult to injury, Walmart's CEO Doug McMillon said he was just a regular associate. McMillon makes $10 million a year, while about 30,000 Walmart employees make minimum wage. He tried to spin the situation in a positive light by saying that he had 1.3 million associates, and "only" 30,000 made minimum wage.
Brands like Ralph Lauren, Coach, Aeropostale and Gap are paying their CEOS more than 100 times than the average store manager.
Ralph Lauren, for example, paid its CEO $26,157,178 in 2013. A store manager earned $67,000. J. Crew had the lowest discrepancy.
J. Crew CEO Mickey Drexler made $235,000 and store managers made $59,150. This is only four times more than his employees. However, he did make $13 million in 2011.
Former Target CEO Gregg Steinhafel received a $37.8 million severance package. It's interim CEO makes about $4.6 million in the meantime.
Other companies with large pay gaps include Kohl's, Walgreens and Macy's. At Walgreens, the CEO makes $4 million while employees' median pay is $30,000. For Kohl's, the CEO Kevin Mansell is paid $2.1 million, while employees median pay is $28,500. Terry J. Lundgren, Macy's CEO, makes $3.5 million, and the median pay is $32,200.
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