Doug McMillon, CEO of Walmart, earned 1,188 times more than the company’s median worker in the retailer’s last fiscal year that ended on January 31.
According to company indexing last fiscal year, McMillon earned $22.8 million while Walmart’s median worker had a gross totaling $19,177. The company is the nation’s private sector that has the most number of employers which amounts to 2.3 million workers worldwide. The figure includes both part-time and full-time employees, and 1.5 million of these workers are in the US.
For the first time, US companies were mandated to release the annual gross of CEOs including the pay ratios. The requirement is part of the Dodd-Frank financial reforms approved during the Obama administration. The pay ratios between CEOs and employees clearly show that even after the 2008 financial crisis, chief executives continue to earn substantially higher than the workers.
Walmart is not the only company that showed tremendous gaps in the pay ratios. For instance, Macy’s CEO earned $11.1 million in the last fiscal year, which was 806 times larger than the company’s median worker. On the other hand, Gap’s CEO made $15.6 million, that was 2,900 times bigger compared to the median employee.
According to Walmart spokesperson Randy Hargrove, the company has made significant investments in their employees in the past years. The efforts include raising the employees’ minimum wage to $11 per hour that began in February. The company also allotted budget for the workers’ educational programs and training.
“It’s about moving people beyond entry-level jobs by giving associates clearer career paths, skills-based training and more control of their schedule,” Hargrove said in a statement with CNN.
McMillon has been Walmart’s CEO since 2014. The company acquired the majority of its earnings from online sales under McMillon’s leadership, as the retailer competes against Amazon (AMZN).
According to Walmart’s latest fiscal year, McMillon made $1.3 million. Most parts of his salary were in the form of stocks awards.