A new report claims that the pay of CEOs continues to skyrocket at publicly traded companies at the expense of workers.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The Institute for Policy Studies, a nonprofit research center, says that public corporations continue to prioritize CEO pay and stock buybacks rather than reinvesting in their companies and employees. The report cites home improvement retailer Lowe’s (LOW) as an example of this trend.
According to the research report, Lowe’s CEO Marvin Ellison received a compensation package valued at $20.2 million in 2024, which was 659 times the median pay of an employee at the company. At the same time, Lowe’s spent $46.6 billion over six years through 2024 buying back its own stock and boosting the share price.
‘Buyback Barons’
The Institute for Policy Studies cites similar situations at fellow retailers Home Depot (HD) and Walmart (WMT), labeling the companies “buyback barons.” In all, the report singles out 100 S&P 500-listed companies that have the lowest median worker pay.
The institute has reported on these so-called “low-wage 100 companies” for the past three years, highlighting excessive pay gaps between senior executives and workers, and how stock buybacks are often prioritized over corporate reinvestments. “CEOs get 80% of their compensation in some form of stock-based pay, so there’s an incentive to spend money on stock buybacks,” reads the report.
Is WMT Stock a Buy?
The stock of Walmart has a consensus Strong Buy rating among 28 Wall Street analysts. That rating is based on 28 Buy recommendations issued in the last three months. The average WMT price target of $113.96 implies 16.29% upside from current levels.
Read more analyst ratings on WMT stock
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.