Fast-Food CEOs Make 1,200 Times as Much as One of Their Workers—and They Want to Keep it That Way

[xchrom]

http://www.thenation.com/blog/179525/most-unequal-industry-america-also-one-fighting-minimum-wage


Demonstrators hold signs and chant slogans outside of a Wendy's fast-food restaurant, April 4, 2013, in New York. (AP Photo/Mary Altaffer)

David Novak is the chief executive of Yum! Brands, the parent company that runs Pizza Hut, Taco Bell and KFC. Last year, while Yum! Brands and other restaurant companies lobbied against raising the minimum wage, Novak made at least $22 million—more than 1,000 times what the average fast-food worker makes in a year. In return for paying him so much, Yum! got a tax break.

The National Restaurant Association, which represents Yum! and other restaurant companies, is expected to launch a lobbying blitz in Washington next week against a minimum wage increase. For years the restaurant industry has fought to keep the wage floor low, all while rewarding its CEOs with increasingly large pay packages. As a result, the food industry is now the most unequal sector in the American economy. Thanks to a tax loophole that encourages companies to raise “performance pay” for executives, taxpayers are effectively subsidizing the imbalance.

While inequality between low-level workers and CEOs manifests in all areas of the economy, a new report from Demos concludes that the gap within the food industry is exceptional. Between 2009 and 2012 the CEO-to-worker pay ratio in food services and accommodation was about twice as large as most other sectors. In 2012, fast-food CEOs earned 1,200 times as much as the average employee.

[Eric J in MN]

1. And 1,200x the avg worker means even more compared to the min wage worker (NT)

NT