A report published by Economic Policy Institute revealed that the take home pay of Chief Executive Officers (CEOs) in the US has grown 940% since 1978, while typical worker compensation has risen only 12%.
The study finds that the astronomical gap between the pay of bosses and workers is the driving force behind the rising wealth inequality.
Democratic presidential candidate Senator Elizabeth Warren proposed a measure that would require U.S corporations to turn over part of their board of directors to members chosen by employees.
Vermont Senator Bernie Sanders, another 2020 hopeful, said that he would prohibit companies from buying back their own stock — a strategy that drives up share prices — unless their workers receive benefits in return.
Meanwhile, the organization behind top CEOs are working on a plan to ignore shareholders’ interests in order to protect their wealth.
The new statement, released Monday by the Business Roundtable, suggests that “the widening income inequality and rising expectations from the public about corporate behavior, will be addressed through “diversity” politics.”
“Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity,” reads the friendly-sounding statement from the organization, which is chaired by JPMorgan Chase CEO Jamie Dimon.
Global corporations facing scrutiny will focus on social divisive issues in order to mask the growing wealth gap. Leading tech companies will delve in immigration and border control issues while Walmart will tackle mass shootings.
Global giants, Burger King and Mercedes-Benz have recently released commercials promoting LGBTQ rights.
In Hungary, an advertising campaign, “Love is Love,” was launched by the Coca-Cola Company ahead of a music festival in Budapest.
A spokesperson for Coke said in a statement that it “strives for diversity, inclusion, and equality in our business, and we support these rights in society as well”.
Top executives have understood that controversial social issues ranging from migration to LGBTQ rights will divide consumers and in doing so, it will take the focus away from the widening wealth gap.