Between 2020 and 2023, dividends paid to shareholders by the 1,200 largest companies in the world have grown, in real terms, 14 times faster than the average wages of workers in 31 countries, which together represent 81% of global GDP. During the same period, dividends of major Italian companies have grown by 86% in real terms, while real wages have seen a decrease of nearly 13%. This analysis, conducted by Oxfam and based on the Janus Henderson Global Dividend Index, shows that the total amount of dividends is projected to reach $1.72 trillion in 2024, surpassing the record of $1.66 trillion in 2023. In 2023, dividends distributed by the largest Italian companies listed on the stock exchange reached a record $20.1 billion (€18.5 billion), with a 17.9% annual increase.
Looking at a broader time frame, nominal wages in Italy have grown by 107.5% between 1991 and 2022, but real wage levels have remained almost unchanged, showing a growth of just 1%. This stagnation has placed Italy in 22nd position among OECD countries for average annual real wages, marking a drop of 13 positions compared to 1992. Oxfam’s research also found that in 31 countries, between 2020 and 2023, dividends adjusted for inflation increased by 45% (+$195 billion), while wages have grown by just over 3% on average, excluding China which represents a significant portion of global wage growth. The wealthiest 1% now hold 43% of all global financial assets, with the average member of this group earning $9,000 in dividends in 2023, equivalent to eight months’ salary for the average worker in the 31 countries analyzed.
Misha Maslennikov, a policy advisor on economic justice at Oxfam Italy, expressed concern over the disparity between soaring corporate profits and wealthy shareholders’ earnings, while wages continue to stagnate. This trend traps millions of workers in a cycle of poverty, preventing them from achieving a decent standard of living for themselves and their families. Nearly 1 in 5 workers globally earn below the poverty threshold of $3.65 per day (purchasing power parity), with 66% of workers in low-income countries falling below this threshold. Countries like Afghanistan (22%) and Sri Lanka (9%) have particularly high levels of working poverty compared to the threshold of $6.85 per day (purchasing power parity).
Oxfam’s analysis sheds light on the widening gap between corporate profits and workers’ wages, raising concerns about economic justice and the impact on poverty levels globally. Despite increasing dividends and corporate earnings, many workers continue to struggle with low wages that are insufficient to provide a decent standard of living. The concentration of wealth in the hands of a few exacerbates inequalities within societies and underscores the need for fairer economic policies that prioritize workers’ well-being and equitable distribution of resources. Addressing these challenges will require a concerted effort from governments, businesses, and civil society to ensure that economic growth benefits all members of society, rather than a select few.
