Pope Leo XIV, the new Pontiff, has voiced his concern regarding the widening income disparity between the workforce and the super-rich, specifically highlighting Elon Musk and his recently announced nearly $1 trillion compensation package. In an interview with Crux Now, Pope Leo described the “continuously wider gap between the income levels of the working class and the money that the wealthiest receive” as a “very significant” contemporary issue.
He pointed out that while CEOs 60 years ago might have earned 4 to 6 times more than their workers, this figure now reaches 600 times. Pope Leo also referenced Tesla`s announcement of a potential $1 trillion payout to Musk, which would make him the world`s first publicly known trillionaire. He questioned the implications, stating, “What does that mean and what`s that about? If that is the only thing that has value anymore, then we`re in big trouble.”
The Trillion-Dollar Plan at Tesla
Tesla`s board recently approved a performance-based compensation plan for Musk, its CEO, offering him approximately $975 billion if he successfully increases Tesla`s revenue from its current $1 trillion to $8.5 trillion, alongside achieving other key milestones.
A Legacy of Concern: From Francis to Leo XIV
Pope Leo XIV, the first Pope from the United States, began his papacy in May this year, succeeding Pope Francis, who passed away in April. Pope Francis had also frequently addressed the issues of growing income inequality and marginalization, notably remarking in 2020, “The world is rich, and yet the number of poor people is swelling all around us.”
Societal Impact of Wealth Concentration
Darrell West, a Senior Fellow at the Brookings Institution, recently told NPR that income inequality is “completely out of control,” asserting that the U.S. currently experiences its “worst income inequality in the last century.” West emphasized that the concentration of wealth among individuals like Musk has numerous significant consequences, potentially transforming democracy into an oligarchy. He explained that this influences tax, education, and healthcare policies, risking a system that prioritizes the interests of a select few over the welfare of the general populace.
Inequality in the Tech and Gaming Industries
The issue of income disparity also emerged in the gaming industry following recent mass layoffs at Microsoft, including within Xbox. Amidst this context, Stephen Totilo of Game File reported that Microsoft CEO Satya Nadella`s compensation for the latest fiscal year was $79.1 million, in contrast to the median annual compensation of a Microsoft worker, which stood at $193,744.