New Report Highlights How America’s Largest Corporations Rely on Public Assistance to Subsidize Low Wages

A recent analysis from the Institute for Policy Studies identifies twenty major S&P 500 corporations that maintain the lowest median wages for U.S.-based employees. The report, authored by Sarah Anderson, reveals that these companies effectively utilize taxpayer-funded programs like SNAP and Medicaid as a form of corporate welfare. Data indicates that a significant portion of the workforce at these firms earns so little that they qualify for government health and food assistance. For instance, projections based on Nevada state data suggest that hundreds of thousands of employees at retail giants like Walmart and Amazon rely on Medicaid to cover basic healthcare needs.

The financial disparity between corporate leadership and the average worker remains stark within this group. While the median pay for these workers often falls below federal poverty thresholds for families, the average CEO at these twenty firms earned $18.6 million in 2024. Furthermore, these corporations maintained an average CEO-to-worker pay ratio of 899 to 1, significantly higher than the broader S&P 500 average. The report argues that these companies prioritize stock buybacks over wage increases, noting that the $32.5 billion spent on buybacks in 2024 could have substantially raised the standard of living for over one million employees. Anderson emphasizes that wage suppression, rather than just rising prices, serves as a primary driver of the current national affordability crisis.