CEO Pay Surged 20x Faster Than Worker Wages in 2025, Oxfam Report Finds
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Wage growth for American workers has stalled while executive compensation continues to climb, according to a new joint report released Thursday by Oxfam and the International Trade Union Confederation (ITUC).
In the United States, CEO pay increased approximately **20 times faster** than typical worker wages over the past year, based on analysis of data from S&P Capital IQ, the Federal Reserve, and the Bureau of Labor Statistics.
The Numbers Tell a Stark Story
After adjusting for inflation:
- **Average private-sector hourly wages** grew by just **1.3%** from 2024 to 2025.
- **CEO compensation** for 384 S&P 500 executives with available data rose by **25.6%** over the same period.
The disparity extends beyond annual growth. According to a September 2025 report by the Economic Policy Institute, CEOs now earn an average of **281 times more** than the typical worker—up from a ratio of roughly 60-to-1 just 35 years ago. In 2024, the average CEO took home **$22.98 million** in total compensation.
Why This Matters for Everyday Americans
"We cannot have a conversation about the affordability crisis without talking about extreme inequality—and in particular, the extreme inequality between CEO pay and worker pay," says Patricia Stottlemyer, labor rights policy lead for Oxfam America.
That disconnect is felt acutely by households across the country:
- **65%** of U.S. consumers say price increases are outpacing their income (J.D. Power, February 2026).
- **56%** report that everyday life has become less affordable over the past year (CNBC/SurveyMonkey Quarterly Money Survey, April 2026).
- **59%** say they are living paycheck to paycheck.
Inflation, which rose from an annual rate of 2.4% in February to 3.3% in March, has pushed cumulative prices up roughly **16% over the past four years**, according to the Consumer Price Index.
How Americans Are Coping
Faced with rising costs and stagnant wages, many are adjusting their financial behavior:
- **49%** have cut back on discretionary spending
- **40%** have dipped into savings
- **37%** have delayed major purchases
Others are seeking additional income:
- **30%** have taken on extra work, a side hustle, or a second job
- **29%** are actively looking for higher-paying positions
- **14%** have asked for a raise or salary increase
Even with these adjustments, lower-income earners continue to struggle. "After reducing their spending, lower earners are still having a hard time making ends meet," noted Will Auchincloss, Americas retail sector leader at EY-Parthenon, in December.
Compounding the challenge: the purchasing power of the federal minimum wage has declined by nearly **21% since 2019**, Stottlemyer points out.
A Call for Policy Change
Stottlemyer argues the current economic system is "designed to benefit this ultra-wealthy few at the expense of working people." She identifies two key levers for change: enacting stronger labor policies to raise the minimum wage and implementing tax reforms targeting extreme wealth.
On Tuesday, a coalition of Democratic members of Congress introduced the **Living Wage for All Act**, which would require:
- **Large employers** (500+ employees nationwide or $1 billion+ in annual revenue) to raise their minimum wage to **$25/hour by 2031**
- **Smaller employers** to reach the same $25 threshold by **2038**
"The resources are there to raise workers' pay," Stottlemyer emphasizes. "It's just a matter of policy choice that decides how the wealth that workers generate is allocated."
As the debate over wage equity intensifies, the widening gap between executive compensation and worker earnings remains a central flashpoint in discussions about economic fairness, affordability, and the future of work in America.