A shocking report has revealed the harsh reality faced by millions of workers at some of America's biggest companies. These employees, despite their hard work, are forced to rely on public assistance programs for their basic needs. But here's where it gets controversial: even as these workers struggle, CEO compensation continues to skyrocket.
The report, published by the Institute of Policy Studies, shines a light on the 'Low-Wage 20' - a group of 20 S&P 500 corporations with primarily US-based workforces and the lowest median wages. Collectively, these companies employ a staggering 6.7 million people across the country.
In most states, the median pay at 75% of these companies is lower than the income minimum for a family of three to qualify for Medicaid. And in 13 of these companies, the median pay doesn't even meet the Supplemental Nutrition Assistant Program (SNAP) income threshold for a family of three.
Take Walmart and Amazon, for example. In Nevada, nearly a quarter of Walmart employees and half of Amazon workers were on Medicaid in 2024. And in four states that disclose SNAP data, over 10,000 Walmart workers and 9,000 Amazon workers were enrolled in the program.
The report also highlights the impact of budget cuts, with Donald Trump's 'One Big Beautiful Bill' expected to result in millions losing their Medicaid and SNAP benefits.
And this is where it gets even more concerning. While these workers struggle, the corporations are spending massive amounts on stock buybacks. In 2024, these companies spent a total of $32.5 billion on buybacks, with Lowe's and Home Depot leading the way.
Imagine if this money was used to boost worker pay instead. The report notes that the wage of a million workers could have risen significantly, to a level where they could afford the average rent for a two-bedroom apartment in the US. But instead, the average median pay among the 'Low-Wage 20' declined by 4.6% from 2019 to 2024, adjusted for inflation.
Even at Starbucks, known for its 401K matching program, many workers can't afford the benefit. In 2024, 45% of eligible employees had zero balances in their plan accounts. Meanwhile, the Starbucks CEO, Brian Niccol, had a compensation of $95.8 million that year, a ratio of $6,666 to $1 compared to the median pay.
Across these 20 corporations, average CEO pay reached $18.9 million in 2024, with an average CEO to median worker pay ratio of $899 to $1. This wealth is tied to sixteen billionaires, including Jeff Bezos of Amazon, members of the Walton family from Walmart, and Howard Schultz, the former Starbucks CEO.
Sarah Anderson, director of the Global Economy Project at the Institute for Policy Studies and author of the report, said: "When corporations can shift their employees' living costs onto taxpayers, it's a form of corporate welfare. With anti-poverty programs facing spending cuts, major corporations in the world's richest country must pay their employees a living wage."
Amazon, Walmart, and Starbucks have responded to the report. Amazon claims their pay is among the best in the industry, while Walmart emphasizes their "ladder of opportunity" for employees on public assistance. Starbucks highlights their benefits like healthcare and tuition coverage, noting their high employee retention rates.
The question remains: is it fair for these corporations to rely on public assistance programs to support their employees, while their CEOs enjoy massive compensation packages? What do you think? We'd love to hear your thoughts in the comments.
