SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
stock buybacks
CEOs Get Rich Underpaying Their Workers and Then Don't Stand Up for Them
How have the largest employers of low-wage workers responded to these threats? This year’s edition of the annual Institute for Policy Studies Executive Excess report takes a look by zeroing in on the 100 S&P 500 firms with the lowest median wages, a group we’ve dubbed the “Low-Wage 100.” The country’s most profitable retailers, fast food chains, and hospitality firms dominate the list.
Low-Wage 100 CEOs Have Remained Silent About Threats to Workers
Our key finding: Low-Wage 100 CEOs have raised nary a peep about ICE attacks on their employees or the gutting of our social safety net. And, with few exceptions, they have obediently rolled back DEI programs.
By looking the other way as low-wage workers face surging threats, corporate CEOs have shown even more clearly that we cannot rely on them to voluntarily do the right thing.
How did these corporate leaders choose to deploy their vast political power instead? Passage of the July 2025 budget bill was a top priority. This legislation will throw millions of Americans off Medicaid and the Supplemental Nutrition Assistance Program (SNAP) to pay for more tax cuts for the rich and a massive increase in ICE funding.
Under the bill’s reduced top marginal tax rate, chief executives will be able to take home an even greater share of their fat paychecks. In 2025, average CEO compensation within the Low-Wage 100 hit $17.5 million. By contrast, the group’s average median worker pay sat at just $36,571 and their average CEO-worker pay gap came to 614 to 1.
Low-Wage 100 Firms Won Tax Cuts for the Rich, Paid for With Cuts to Aid Programs Their Employees Rely On
We reviewed public statements about this budget legislation by Low-Wage 100 firms and the corporate lobby groups that represent them. Each statement cheered the law’s tax cuts, which will overwhelmingly benefit the wealthy. The International Franchise Association even praised the doubling of the estate tax exemption, a tax break that will benefit less than 0.2% of the population.
Not one statement expressed concern about the law’s drastic Medicaid and SNAP cuts. A recent Government Accountability Office report lists the top employers of workers receiving Medicaid and SNAP in a sampling of states where this information is available. Low-Wage 100 firms dominate the lists.
Long-Term Trends of Executive Excess
Given past trends, Low-Wage 100 CEOs’ muted response to the increased threats against their employees is hardly a surprise. The pandemic opened the eyes of many Americans to the essential value of frontline low-wage workers. But even that national crisis did not lead to more equitable sharing of corporate wealth.
Between 2019 and 2025, the Low-Wage 100’s average CEO pay rose 41.4%, double the 20.7% increase in their average median worker pay.
A technical note: we did not adjust these figures for US inflation because median pay figures in corporate SEC filings are based on a company’s global workforce. But many Low-Wage 100 firms have the vast majority of their employees in the United States. In fact, that’s the case for 5 of the 10 Low-Wage 100 corporations with the lowest median pay (Ross Stores, Ulta Beauty, TJX, Yum! Brands, and Dollar Tree).
Buybacks Bonanza
To further enrich their wealthy executives, Low-Wage 100 firms have spent over $718 billion repurchasing their own stock over the past seven years. This formerly illegal financial maneuver artificially boosts the value of a company’s shares and, in the process, pumps up the value of the stock-based compensation that makes up about 80% of corporate CEO compensation.
Every dollar spent on buybacks represents a dollar not spent on worker wages or long-term productive investments. The Lowe’s home improvement store’s $46.8 billion expenditures on buybacks over the past seven years could have covered the cost of a $24,235 bonus for each of their 276,000 employees every year during that period. Median pay at Lowe’s in 2025: $37,371.
Policy Changes to Curb Executive Excess
The Low-Wage 100 represent a business model designed to deliver staggering personal gains for top executives by squeezing their workers. This predominant model is shredding our social fabric and threatening our democracy. We clearly need to build worker power and raise the minimum wage to a living wage. But to solve this problem we also need to curb runaway CEO pay.
Governments at all levels should explore options for leveraging tax policies and procurement and subsidy policies against executive excess. These policy solutions have serious bipartisan potential.
For instance, one survey found that 89% of Democratic and 71% of Republican likely voters support a tax hike on corporations that pay their CEO over 50 or more times what they pay their median employees. A bipartisan provision in the pending Senate defense authorization bill would bar military contractors from engaging in CEO pay-inflating stock buybacks.
Congress should also increase the existing 1% stock buybacks tax, ideally to a level high enough to discourage this activity. But even if companies continued the wasteful practice, hiking this tax would generate additional revenue for combatting inequality. If a 4% buyback levy had been in place between 2023 and 2025, the Low-Wage 100 would have owed approximately $9.3 billion in additional federal taxes.
By looking the other way as low-wage workers face surging threats, corporate CEOs have shown even more clearly that we cannot rely on them to voluntarily do the right thing. Lawmakers must take responsible action to narrow our dangerous economic divides.
Meet the 16 Billionaires Making Bank by Underpaying Their Workers
For detailed data on wages and CEO pay at these and other leading low-wage corporations, see the recent Institute for Policy Studies report "America’s 20 Largest Low-Wage Employers and the Affordability Crisis." This article includes updated net worth data from the just-released Forbes 2026 Global Billionaires List.
Walmart
Seven descendants of Walmart founder Sam Walton have accumulated their multi-billion-dollar fortunes off the backs of the giant retailer’s low-wage workers. His eldest son, Rob Walton, leads the pack, with $146 billion. Another billionaire, Drayton McLane, gained entry to this elite club by selling his grocery distribution business to Walmart for a significant share in the retailer.
When corporate resources are funneled into the pockets of those at the top while ordinary employees have to rely on public assistance, we are all subsidizing the executive mansions and private jets.
Median pay at Walmart, the largest US private sector employer, stood at $29,469 in 2024. That’s below the income limits for a family of three to qualify for Medicaid and Supplemental Nutrition Assistance Program (SNAP) food aid benefits. It’s nowhere near the $59,600 income level needed to afford the US average rent for a two-bedroom apartment.
In addition to median pay figures reported in corporate proxy statements, we gathered data from the small number of state governments that disclose corporations’ use of public assistance programs to subsidize their low wages.
In Nevada, Walmart had 4,574 employees, 29.3% of their employees in that state, enrolled in Medicaid in 2024. In four states (Colorado, Massachusetts, Illinois, and Michigan), Walmart had a total of 10,920 employees enrolled in the SNAP food aid program.
The media organization More Perfect Union points out that Walmart not only relies on SNAP to make up for the low wages they pay their workers, but they also benefit when people use food stamps to buy groceries in their stores. According to a Numerator survey covering the 12 months ending July 31, 2025, Walmart ranked No. 1 for SNAP benefit redemption, receiving nearly 26% of all SNAP dollars.
Amazon
Since MacKenzie Scott received 4% of Amazon stock in her 2019 divorce settlement, the ecommerce goliath has had not one but two reps on the billionaire ranking. Scott has become a major philanthropist, but is still sitting on an estimated $28.6 billion. Her ex, Amazon founder and current Trump ally Jeff Bezos, came in fourth in the world in the Forbes list this year, with $224 billion.
Amazon’s typical employees are on another economic planet. Their median pay of $37,181 just barely exceeds the family-of-three income limits for Medicaid and SNAP. With half of Amazon employees earning less than that amount, a significant share of the company’s 1.2 million US employees no doubt have to rely on public assistance.
Indeed, the Nevada state government’s Medicaid report reveals that Amazon had 8,951 employees enrolled in that health program in that state in 2024, making up 48.4% of all of the firm’s employees in Nevada. In the four states that report SNAP enrollee data by employer, Amazon came in second after Walmart, with 9,633 employees receiving those benefits.
Home Depot
Home Depot co-founder and Atlanta Falcons owner Arthur Blank holds an estimated $11.1 billion. His fellow co-founder, Bernard Marcus, died on election day in 2024, after donating $9.4 million to the campaigns of President Donald Trump and other Republicans.
While ranking among the country’s lowest-paying companies, Home Depot has had plenty money to blow on stock buybacks. This is a financial maneuver that artificially inflates the value of a company’s shares—and the stock holdings of wealthy executives and stockholders.
The big-box chain spent $37.9 billion on share repurchases between 2019 and 2024. That sum would have been enough to give each of Home Depot’s 419,600 US employees six annual $15,039 bonuses. Home Depot’s median pay in 2024 stood at just $35,196—less than the $35,631 income limit for a family of three to qualify for Medicaid.
State government data show that Home Depot employees had a total of 2,213 employees enrolled in SNAP food aid in Colorado, Massachusetts, Illinois, and Michigan.
Starbucks
Longtime Starbucks CEO Howard Schultz has accumulated $3.5 billion in wealth off a company that paid its median earner just $14,674 in 2024. Employee discontent has sparked pro-union elections at more than 570 stores over the past four years. But the company has used various tactics to prevent workers from securing a first contract, including during a period when Schultz returned to his CEO post.
Schultz recently purchased a $44 million penthouse in Surfside, Florida, a state with zero personal income tax.
Taxing away excessive wealth could also encourage business models that share profits equitably with all employees.
Rounding out the low-wage billionaires list are the founders of Best Buy and Chipotle and two descendants of John Tyson, the founder of Tyson Foods, a meat processor with a sizeable immigrant workforce.
The poverty wage business model that is so prevalent in Corporate America works spectacularly well for a handful of wealthy and politically powerful executives and shareholders. For the rest of us, not so much.
When corporate resources are funneled into the pockets of those at the top while ordinary employees have to rely on public assistance, we are all subsidizing the executive mansions and private jets, the massive political spending, and all the other trappings of excessive wealth.
Taxing Excessive Wealth
Lawmakers have introduced several tax proposals to curb the size of billionaire fortunes. Under current law, the ultra rich hold most of their wealth in stock and other financial assets that are not taxable until they are sold. In the meantime, they’re allowed to borrow against these assets to fund their lavish lifestyles and then pass their wealth on to heirs tax-free.
One federal bill to address that loophole, the Billionaires Income Tax Act, would impose an annual tax on billionaires’ gains from tradable assets like stocks, whether or not they sell the asset.
Several other proposals would tax billionaires’ accumulated wealth. For example, Sen. Elizabeth Warren (D-Mass.) and Rep. Pramila Jayapal (D-Wash.) are the lead advocates of the Ultra-Millionaire Tax Act, which would apply a 2% annual tax on the net worth of households and trusts between $50 million and $1 billion and a 3% tax on those with net worth above $1 billion.
Sen. Bernie Sanders (I-Vt.) and Rep. Ro Khanna (D-Calif.) recently introduced a slightly different model that would establish a 5% annual wealth tax on billionaires. This proposal is similar to a California state ballot initiative for a 5% one-time wealth tax on billionaire residents of that state.
Each of these proposals would raise massive revenue for public investments. At the same time, taxing away excessive wealth could also encourage business models that share profits equitably with all employees instead of extracting from those at the bottom to make wealthy executives and shareholders even richer.
Most Popular