The average annual salary of employees of the “Magnificent Seven” technologies explained in the graph

• The chart, based on data from The Wall Street Journal, paints a clear picture of the salaries paid by the “Magnificent Seven” tech companies.

• The difference in salaries between the heads of these companies and their employees is emphasized.

Working in one of the so-called “magnificent seven” is the dream of many. Not only because of the cutting-edge and innovative projects these tech companies are involved in, but also because of the good salaries they charge.

The Magnificent Seven group includes Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA and Tesla. Its name is associated with the good dynamics of its shares, which leads to their capitalization breaking all records.

These companies are led by NVIDIA, Microsoft, and Apple, all of which have market capitalizations that exceed (or have at some time exceeded) $3 trillion. Alphabet, Amazon, Meta or Tesla don’t reach these record levels, but they have the highest valuations in the tech sector.

Through May 2024 alone, these seven companies added $1.4 trillion in market capitalization to the S&P 500 Index, outperforming 296 other listed companies in total earnings over the same period. The largest contributor to this 1.4 billion was NVIDIA, which beats best forecasts for 2024, contributing 50% of this capitalization gain.

Wages at these companies are always under public scrutiny as a mirror of the wages in which the rest of the sector sees itself. Visualcapitalist.com created a chart showing the salaries of the “Magnificent Seven.” This graph shows the average salaries of the Magnificent Seven in 2023, based on analysis Wall Street Magazine

And My LogIK.

Highest paid employees

Before you start pulling the numbers out of the oven, it’s important to remember that the average is determined by the nature of most jobs at that company and the larger the company’s workforce, the greater the difference between salary ranges there. will.

For example, an e-commerce company like Amazon has a large team dedicated to developing the company’s software as well as preparing orders, with a huge difference in salaries.

1- Goal

At the same time, Meta is positioned as a company with the best average salary out of seven companies, with an average salary $379,050 per year, which represents an increase of 28% compared to 2022. Meta has 67,317 employees, most of whom are software engineers. This makes the average salary quite high.

Mark Zuckerberg, as the CEO of Meta, has a designated salary of $24.4 million per year. This represents a salary difference of 64.37 times between the average salary of Meta employees and the salary of its CEO.

2- Alphabet

Alphabet is the second highest-paid company in the club of seven. Its employees receive an average salary US$315,531. As with Meta, most of the company’s positions are in software development, so this specialization makes their salary range quite high.

Sundar Pichai earns an annual salary of $8.8 million, which represents a difference of 27.88 times between his CEO’s salary and the average salary of his employees.

3- NVIDIA

The official average salary of NVIDIA employees is $266,939 per year. It should be noted that this is the amount its employees receive as an annual salary, but NVIDIA offers discounted stock purchase plans to its users. These purchasing plans made many of her employees millionaires.

Thanks to the company’s strong financial results, Jensen Huang received $34.2 million, which is 60% more than the previous year. This represents a difference of 128.11 times between NVIDIA’s CEO and his employees.

4- Microsoft

Just a few days ago, Microsoft remained the most valuable company in the club of great ones, and now it has been overtaken by NVIDIA. The average salary at Microsoft is $193,770

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According to the analysis Wall Street MagazineSatya Nadella’s salary in 2023 was $48.5 million, so the difference between the CEO of the company founded by Bill Gates and the average of his employees is 250.2 times higher.

5- Apple

The third company by market capitalization falls to the bottom of the table in terms of employee salaries, setting the average at $94,118 per year. Notable in this average is the presence of customer service employees in Apple stores, whose salaries are not comparable to those of most engineering employees at other technology companies.

In contrast, Tim Cook hit the accelerator on his 2023 annual compensation, receiving total compensation of $63.2 million. This is one of the largest salary disparities on the list, with Tim Cook’s salary being 671.49 times the average salary of his employees.

6-Tesla

Tesla’s wages may matter most to big tech companies, given that most of its employees hold positions on different parts of their car assembly lines. Thus, the average salary will be closer to the average salary of the average auto worker in the US. The average Tesla employee salary is $45,811.

At Tesla, we also find an interesting paradox in that Elon Musk officially receives a salary of one dollar per year for his work at the helm of Tesla. This would put the company in the strange position of having its employees earn 45,800 times more than the company’s CEO.

However, if Elon Musk finally receives his controversial $46 billion bonus, it would mean the annual back pay since 2018 is equivalent to $7,666.66 million per year. In this case, Musk would earn 167,354.27 times more than the average of his employees.

7- Amazon

The company founded by Jeff Bezos closes the list of salaries for the Magnificent Seven employees. Amazon charges that a good portion of the company’s more than 1.5 million employees worldwide work in warehouse logistics and order preparation. The average salary of its employees is from $36,274 per year

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Officially, Andy Jassy received a salary of $1.5 million in 2023, resulting in a pay ratio of 41.35 times that of his employees.

In Hatak | The highest paid executives in the tech industry, compiled into a simple chart

Image | visual capitalist