The assessment examined 1 500 top‑paying corporations across 33 countries that reported CEO pay for 2025, concluding that corporate profits plus productivity gains are becoming increasingly concentrated at the top. The findings were released as labour movements marked Workers’ Day, a date linked historically to organised labour struggles for fair hours plus safe working conditions.
Chief Economist at the ITUC Daniel Kostzer told Channel Africa that executive pay structures are often tied to financial markets, while worker wages remain tied to labour markets plus day‑to‑day production. “CEO pay rises much faster because executive compensation is mainly tied to financial markets, while workers are paid in relation to labour markets plus real production,” Kostzer said.
Kostzer said the composition of executive packages is central to the imbalance, with shares, stock options plus bonuses linked to profits pushing pay higher when equity prices rise. By contrast, worker pay typically reflects wage bargaining, labour demand, plus company payroll decisions that do not automatically transfer productivity gains into earnings.
Kostzer said corporate justification often centres on attracting plus retaining senior talent, alongside alignment of executive incentives with shareholder interests. Kostzer said the “financialisation” of corporate strategy has reinforced the link between executive income plus share performance, creating strong upward pressure at the top even when worker pay remains flat.
The analysis also highlights a broader risk for economies facing inequality pressure: weak wage growth can suppress household demand, widen social discontent, plus undermine long-term productivity when workers cannot share in growth.
The ITUC–Oxfam findings renew calls for stronger worker protections, fair wage-setting systems, plus policies that reduce excessive pay concentration, including improved transparency in executive remuneration plus stronger collective bargaining coverage.
–ChannelAfrica–
