Starbucks CEO's Pay Gap With Typical Worker Widest in US: AFL-CIO Report

Starbucks CEO Brian Niccol made $98 million in compensation, a 6,666 times higher pay gap compared to the typical worker's pay of less than $15,000. The AFL-CIO's Executive Paywatch report found that CEOs at the largest public companies took home $18.9 million, or 285 times as much as the typical US worker's paycheck. The pay gap has grown even larger in 2024, with the typical employee needing to start working in 1740 to earn what the average CEO received last year.

The latest AFL-CIO Executive Paywatch report reveals a significant increase in the pay gap between CEOs and typical workers at S&P 500 companies. In 2024, the average CEO-to-worker pay ratio stood at 285-to-1, up from 268-to-1 the previous year [1].

Starbucks CEO Brian Niccol’s compensation was particularly notable, with him earning nearly $98 million, compared to the typical worker’s pay of less than $15,000. This resulted in a pay gap of 6,666 times, the largest among the S&P 500 companies [2].

The report also highlights that while CEO pay increased by 7% in 2024, the typical private sector worker’s raise was only 3%. The highest-paid CEO, Patrick Smith of Axon Enterprise, received a package of nearly $165 million [3].

Moreover, the report underscores the disparity in tax cuts. The average CEO will receive a tax cut of nearly $490,000, compared to a $765 tax break for the typical US worker, due to the permanent extension of lower individual income tax rates [2].

The growing pay gap is a significant concern, as it can contribute to economic inequality and potentially undermine employee morale and productivity. The report’s findings underscore the need for policies that address the widening income disparity.

References:
[1] https://aflcio.org/paywatch/company-pay-ratios
[2] https://www.cnn.com/2025/07/23/business/starbucks-ceo-afl-cio-report
[3] https://www.cnn.com/2025/07/23/business/afl-cio-executive-paywatch-report