GM Finds $22 Million To Pay CEO While Closing 5 Plants, Laying Off 15,000 Workers

Last year, General Motors CEO Mary Barra’s total pay was $21.96 million — about 295 times as much as GM’s average employee. That’s actually a drop from the year before when she made $22.58 million.

While a salary 295 times larger than the average GM employee seems like a lot, particularly in the context of firing 15,000 people and closing 5 plants, it’s not even among the most unequal salary differences between average worker and their CEO counterpart.

In 2017, CEOs made 312 times more than the average worker, according to research by the Economic Policy Institute. The difference “was far greater than the 20-to-1 ratio in 1965 and more than five times greater than the 58-to-1 ratio in 1989, although it was lower than the peak ratio of 344-to-1, reached in 2000,” the institute wrote.

 

 

Photo: “Keith Krach with Mary Barra CEO of General Motors” by Keith Krach is licensed under CC BY 2.0

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