Just 10 of the biggest US-listed companies support a living wage, says Oxfam

Shareholder payouts are at an all-time high and ‘inequality is part of the fabric of big business’, claims charity Oxfam

Only 10 of the largest 200 US-listed companies publicly back a living wage, while shareholder buybacks hit a record high in the five years spanning 2018 to 2022, according to analysis by charity Oxfam.

It found that 90 per cent of the aggregate $1.25tn in net profits generated by the companies it reviewed, equating to more than $1.1tn, was paid out to shareholders between 2018 and 2022. This sum was split between $681bn in shareholder buybacks, a new record, and $448bn in dividends.

The charity observed that companies in “low-wage sectors” including retail spent heavily on buybacks, while scrimping on wages. Four of the businesses — fast-food giant McDonald’s, electronics manufacturer Jabil, drinks manufacturer Coca-Cola, and department store group TJX Corporation — paid their chief executives over 1,500 times more than the median worker during this period. 

“Inequality is part of the fabric of big business,” the report says. All four companies have been approached for comment.

A TJX spokesperson told Sustainable Views: “We strive to provide compensation at all levels and in all functions that is both market competitive and equitable across our workforce based on each associate’s skills, qualifications, experience, and scope of responsibilities.” They added: “Our approach to executive compensation is based on core objectives that include rewarding financial performance and driving long-term business success.”

While 10 companies in its analysis have publicly supported the living wage, none have offered a definition for the concept, Oxfam says. The Global Living Wage Coalition defines this as “the remuneration received for a standard workweek by a worker in a particular place sufficient to afford a decent standard of living for the worker and her or his family”.

“We urge policymakers, investors and other corporate stakeholders to take seriously the dangerous impacts of unrestrained inequality and their power to hold corporate America accountable,” says Irit Tamir, senior director of Oxfam America’s private sector department.

You can find the full report here.