McDonalds Employees Must Work Four Months of Overtime to Earn What CEO Makes In One Hour, Report Says
A recent financial analysis reveals that a minimum-wage McDonald’s employee must work four months of overtime to earn what the company’s CEO makes in one hour.
The analysis, compiled by financial information company NerdWallet, examines the financial discrepancies between employees and CEOs of major companies. The report outlines the wage ratio between workers and CEOs of 10 major retail and fast food corporations, including McDonald’s, Starbucks and Wal-Mart.
According to the report, the CEOs earn 874 times more per hour than the average sales associate at their company.
The analysis assumes the average salary for a McDonald’s worker is about $7.73 per hour, although official figures for the company are not publicly available, reports the Huffington Post.
By comparison, the CEO of McDonald’s earns approximately $9,247 per hour.
NerdWallet calculates that it would take a McDonald’s employee approximately 3.86 months of overtime — or 1.5 times the normal pay rate — to earn what the CEO makes in a single hour.
According to Dana Lime, a senior analyst at NerdWallet and author of the report, a fast food employee working full-time still won’t come close to a CEO’s earnings.
“A lot of these companies are paying minimum wage or very slightly above that, and the disturbing fact is that even if a worker works 40 hours a week for a month, they’re never going to get close to what the CEO makes for one hour alone,” she said.
McDonald’s representatives commented that its employees are offered many opportunities for growth in the company, and that its minimum wage workers often work up the corporate ladder.
“McDonald’s offers competitive pay, benefits, and flexible schedules to employees,” said company spokesperson Heidi Barker Sa Shekhem, according to the Huffington Post. “We provide training and professional development for all of those who wish to take advantage of those opportunities.”
More than 50 percent of fast food workers nationwide rely on government assistance, the Huffington Post adds.
An outline of the report from NerdWallet can be seen below.