Income gap widens: Global inequality deepens as executive pay soars and real wages stagnate, Oxfam warns
BERLIN, May 1 — Executive pay around the world has risen sharply in recent years, while all other workers have had less and less money at their disposal, according to an analysis by Oxfam released today, reported German Press Agency (dpa).
The 1,500 highest-paid corporate executives received an average of around US$8.4 million (RM33.3 million) last year, Oxfam, an international confederation of aid and development organisations, said.
Adjusted for inflation, that amounted to an 11 per cent increase in executive pay compared with 2024 and a 54 per cent rise compared with 2019, according to Oxfam.
The calculations were based on data from 1,500 companies in 33 countries from the S&P Capital IQ database, which contains information on listed and private companies worldwide.
By contrast, the inflation-adjusted average income of the global workforce stood at US$17,156 last year, Oxfam said.
That was 0.5 per cent higher than in 2024, but 12 per cent lower than in 2019.
The figures are based on data from the United Nations (UN)’s International Labour Organisation (ILO) and the International Monetary Fund (IMF).
The decline in the number of people living in extreme poverty despite having work has also slowed significantly in recent years.
So-called working poverty fell by an average of seven per cent a year between 2000 and 2019. Since 2020, that rate has more than halved to three per cent.
The current crisis in the Gulf could make the situation worse, the study’s authors warned.
According to the report, the UN Development Programme has warned that, in a worst-case scenario, 32 million more people could fall into poverty as a result of the Iran conflict.
To address the problems, Oxfam called for countries to draw up realistic, time-bound plans to reduce inequality. These should include clear targets and regular reviews.
The organisation also called for taxes on the super-rich, as well as stricter rules on lobbying and the financing of political campaigns by wealthy individuals.
