Sustainable Finance Newsletter - worker pay gap has narrowed to 268:1, but that won't last
By Ross Kerber
Aug 14 (Reuters) - The topic of this week's column is the huge compensation gap within companies. The differencebetween the pay of CEOs and their workers drew a notch narrower, a recent report showed, but don't hold your breath for the trend to continue as labor markets soften.
That's what I learned after doing some reporting about a new report from the AFL-CIO, the top American labor union federation.
You can read more via the link below, as part of our new format for this newsletter. Click here to read the full column on Reuters.com
I have also flagged stories about a new marine fuel and a Special Report on a U.S. health agency that shielded polluters. In addition you canfind a look at how Tesla lobbies hard for electric vehicle benefits backed by Democrats, even as its CEO Elon Musk has endorsed Donald Trump for president.
I'm happy to hear news tips, comments, or what you think of the new column format. You can connect with me on LinkedIn or reach out via ross.kerber@thomsonreuters.com
Why the narrower CEO-worker pay gap won't last
The AFL-CIO, the largest federation of American labor unions, said last weekthe average S&P 500 CEO made $17.7 million in total compensation in 2023. For companies surveyed, the ratio of CEO pay to the median employee's pay averaged 268:1, the report found.That's lower than in 2022 when the ratio was 272:1, or in 2021 when it stood at 324:1. You can read their full report here.
Everything will be fine right? Not so fast, said the economists I spoke with. They pointed out that the pace of workers' wage growth has slowed and that everything really depends on the broader economy.
"The labor market isn't as hot as it was two or three years ago," said Justin Bloesch, a Cornell University economist. "Firms are staffed up and don't need to hire as aggressively," he said.
Click here to read my full column.
Company News
French energy major TotalEnergies TTEF.PA said it supplied its first cargo of 100% biofuel for ships in Singapore as it seeks to expand its sales of lower-carbon marine fuels.
Goldman Sachs' GS.N fund divisionwill leave investor engagement group Climate Action 100+, joining other financial services companies which have pulled out amid a U.S. political backlash.
India's antitrust body took the rare step of recalling reports that detailed alleged breaches of competition law by Apple AAPL.O, which complained the regulator had disclosed commercial secrets.
On my radar
Government loans, tax breaks and other electric-vehicle policies have been instrumental for Tesla TSLA.O and the company continues to lobby for benefitschampioned by the Democratic party, even as Elon Musk has endorsed Donald Trump for president and staged a rambling interview with him on X.com.
Average support for environmental and social shareholder resolutions continued to fall in the 2024 proxy season, a recent Morningstar report found, but support for corporate-governance-related reforms rebounded to an average of 35% from 30% the prior year.
My colleagues wrote a Special Report showing how companies use faulty reports from a small federal bureaucracy, the Agency for Toxic Substances and Disease Registry, to save money on cleanups, defend against lawsuits and deny victims compensation.
Reporting by Ross Kerber in Boston; Editing by David Gregorio
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