From Tesla to McDonald's, these are the 20 CEO-enriching companies that would get hit hardest by Bernie Sanders' new inequality tax

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From Tesla to McDonald's, these are the 20 CEO-enriching companies that would get hit hardest by Bernie Sanders' new inequality tax

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  • Sen. Bernie Sanders announced a tax plan Monday that would penalize companies where CEOs make more than 50 times the median worker.
  • There are 50 companies where the top executive makes more than 1,000 times the median worker, according to a study by the Institute for Policy Studies.
  • Listed below are the top 20 companies where the pay gap between workers and CEOs is more than 1,000.
  • Tesla tops the list.
  • Read more on Business Insider.

On Monday, Sen. Bernie Sanders announced a new Income Inequality Tax Plan that aims to penalize companies where the top executive is paid more than 50 times what the median worker makes.

But at many companies the inequality Sanders aims to tackle is even more pronounced. According to a new study by the Institute for Policy Studies - which the presidential hopeful cited in his tax plan - there are at least 50 companies where the top executive is taking home more than 1,000 times what workers are making.

"At the 50 publicly traded US corporations with the widest pay gaps in 2018, the typical employee would have to work at least 1,000 years - an entire millennium - to earn what their CEO made in just one," co-authors Sarah Anderson and Sam Pizzigati wrote in the September study.

The median CEO pay at these top 50 firms was $15.9 million in 2018, according to the study. For the typcial worker at the same firms, average 2018 pay was $10,027. Roughly 88% had temporary or part-time status in 2018, the study found. Further, 31% of them worked in China, Mexico, or another low-wage country.

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Read more: A hedge fund manager who turned $126,000 of firmwide assets into $500 million explains his Warren Buffett-esque investment process - and why he's not concerned with today's stock market valuation

The problem is prevalent even outside the top 50 firms with the widest pay gaps, according to the study. More than 80% of firms in the S&P 500 paid their CEO more than 100 times the median worker pay in 2018, IPS found. Only five firms in that group had ratios of less than 25-to-1.

But even that's a flawed measure of CEO wealth, according to the study. The majority of CEO real earnings come from holding company stock. Those can be as high as $87 billion for Warren Buffett at Berkshire Hathaway.

These kinds of pay incentives also factored into the IPS ranking. Elon Musk of Tesla makes more than 40,000 times the median worker, based on a $2.2 billion stock option he was awarded in 2018.

Here are the top 20 firms with the widest pay gaps between median workers and CEOs, according to the IPS report. They are organized by the pay ratio from smallest to largest.

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20. Estee Lauder Companies

20. Estee Lauder Companies

Ticker: EL

CEO: Fabrizio Freda

CEO Pay: $49 million

Median Worker Pay: $28,845

CEO-Worker Pay Ratio: 1,690

Source: Institute for Policy Studies

19. VF Corporation

19. VF Corporation

Ticker: VFC

CEO: Steven E. Rendle

CEO Pay: $18 million

Median Worker Pay: $10,099

CEO-Worker Pay Ratio: 1,767

Source: Institute for Policy Studies

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18. Nu Skin Enterprises

18. Nu Skin Enterprises

Ticker: NUS

CEO: Ritch Wood

CEO Pay: $6 million

Median Worker Pay: $3,382

CEO-Worker Pay Ratio: 1,793

Source: Institute for Policy Studies

17. Western Digital

17. Western Digital

Ticker: WDC

CEO: Stephen Milligan

CEO Pay: $20 million

Median Worker Pay: $10,999

CEO-Worker Pay Ratio: 1,795

Source: Institute for Policy Studies

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16. McDonald's

16. McDonald's

Ticker: MCD

CEO: Stephen Easterbrook

CEO Pay: $16 million

Median Worker Pay: $7,473

CEO-Worker Pay Ratio: 2,124

Source: Institute for Policy Studies

15. Skechers USA

15. Skechers USA

Ticker: SKX

CEO: Robert Greenberg

CEO Pay: $27 million

Median Worker Pay: $12,673

CEO-Worker Pay Ratio: 2,159

Source: Institute for Policy Studies

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14. Jabil

14. Jabil

Ticker: JBL

CEO: Mark Mondello

CEO Pay: $11 million

Median Worker Pay: $5,091

CEO-Worker Pay Ratio: 2,238

Source: Institute for Policy Studies

13. Universal Corporation

13. Universal Corporation

Ticker: UVV

CEO: George Freeman lll

CEO Pay: $4 million

Median Worker Pay: $1,528

CEO-Worker Pay Ratio: 2,429

Source: Institute for Policy Studies

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12. Williams-Sonoma, Inc

12. Williams-Sonoma, Inc

Ticker: WSM

CEO: Laura Alber

CEO Pay: $27 million

Median Worker Pay: $11,137

CEO-Worker Pay Ratio: 2,447

Source: Institute for Policy Studies

11. Chipotle Mexican Grill

11. Chipotle Mexican Grill

Ticker: CMG

CEO: Brian Niccol

CEO Pay: $34 million

Median Worker Pay: $13,779

CEO-Worker Pay Ratio: 2,450

Source: Institute for Policy Studies

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10. G-lll Apparel Group

10. G-lll Apparel Group

Ticker: GIII

CEO: Morris Goldfarb

CEO Pay: $18 million

Median Worker Pay: $7,101

CEO-Worker Pay Ratio: 2,493

Source: Institute for Policy Studies

9. Manpower Group

9.  Manpower Group

Ticker: MAN

CEO: Jonas Prising

CEO Pay: $11 million

Median Worker Pay: $4,563

CEO-Worker Pay Ratio: 2,508

Source: Institute for Policy Studies

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8. Axon Enterprise

8. Axon Enterprise

Ticker: AAXN

CEO: Patrick Smith

CEO Pay: $246 million

Median Worker Pay: $95,157

CEO-Worker Pay Ratio: 2,585

Source: Institute for Policy Studies

7. Aptiv Plc

7. Aptiv Plc

Ticker: APTV

CEO: Kevin Clark

CEO Pay: $14 million

Median Worker Pay: $5,414

CEO-Worker Pay Ratio: 2,609

Source: Institute for Policy Studies

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6. Yum China Holdings, Inc.

6. Yum China Holdings, Inc.

Ticker: YUMC

CEO: Joey Wat

CEO Pay: $11 million

Median Worker Pay: $3,885

CEO-Worker Pay Ratio: 2,731

Source: Institute for Policy Studies

5. Align Technology, Inc.

5. Align Technology, Inc.

Ticker: ALGN

CEO: Joseph Hogan

CEO Pay: $42 million

Median Worker Pay: $13,180

CEO-Worker Pay Ratio: 3,168

Source: Institute for Policy Studies

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4. Mattel

4. Mattel

Ticker: MAT

CEO: Ynon Kreiz

CEO Pay: $19 million

Median Worker Pay: $5,489

CEO-Worker Pay Ratio: 3,408

Source: Institute for Policy Studies

3. Gap

3. Gap

Ticker: GPS

CEO: Arthur Peck

CEO Pay: $21 million

Median Worker Pay: $5,831

CEO-Worker Pay Ratio: 3,566

Source: Institute for Policy Studies

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2. Abercrombie & Fitch Co.

2. Abercrombie & Fitch Co.

Ticker: ANF

CEO: Fran Horowitz- Bonadies

CEO Pay: $8.5 million

Median Worker Pay: $2,317

CEO-Worker Pay Ratio: 3,660

Source: Institute for Policy Studies

1. Tesla

1. Tesla

Ticker: TSLA

CEO: Elon Musk

CEO Pay: $2.2 billion

Median Worker Pay: $56,163

CEO-Worker Pay Ratio: 40,668*

Source: Institute for Policy Studies

*This outlier ratio is based on a $2.2 billion stock option award to the CEO in 2018, the IPS report said. According to the Tesla proxy statement, this award will fully vest over 10 years if the company's market capitalization increases to $650 billion (from a current $42 billion) and if the CEO achieves 12 of 16 performance benchmarks.

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