CHICAGO (AP) – Illinois companies have begun disclosing pay differences between their chief executive and median employees.
The Chicago Tribune reports that Congress mandated the reporting requirement in the 2010 Dodd-Frank Act. It’s meant to give shareholders more information for managing executive compensation.
McDonald’s Corp. had one of the largest differences. CEO Steve Easterbrook was paid almost $22 million last year, while the company’s median employee received around $7,000 annually.
McDonald’s defines a median employee as a part-time hourly restaurant crew member in Poland, where wages are lower than in the U.S. Companies, like McDonald’s, with global workforces and that rely on part-time employees have higher pay gaps.
Kraft Heinz had a much smaller difference. CEO Bernardo Hees made almost $4.2 million last year, compared to its median employee pay of about $46,000.
