The average annual salary earned by employees of the “magnificent seven” of technology, explained in a graph

The average annual salary earned by employees of the “magnificent seven” of technology, explained in a graph
The average annual salary earned by employees of the “magnificent seven” of technology, explained in a graph
  • A chart based on data from The Wall Street Journal paints a clear picture of the salaries paid by tech’s “magnificent seven”

  • The salary difference between the CEOs of these companies and their employees is accentuated

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

The group of the magnificent seven is made up of Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA and Tesla. Its name is due to the good performance of its shares, which is taking them to capitalizations that are breaking all records.

At the head of these companies are NVIDIA, Microsoft and Apple, with market capitalizations that exceed (or have at specific times) exceeded 3 trillion dollars. Alphabet, Amazon, Meta or Tesla do not reach these record figures, but they register the highest valuations in the technology sector.

During May 2024 alone, these seven companies added a market capitalization of $1.4 trillion to the S&P 500 index, outperforming 296 other listed companies in combined profits during the same period. The one that contributed the most to these 1.4 billion was NVIDIA, which is exceeding the best forecasts for 2024, contributing 50% of this increase in capitalization.

Salaries in these companies are always subject to public scrutiny as a salary mirror in which the rest of the sector sees itself. Visualcapitalist.com has generated a graph depicting these Magnificent Seven salaries. This graph shows the average salaries of the magnificent seven in 2023, based on the analysis of The Wall Street Journal and My LogIQ.

Average salaries in the “magnificent seven” of technology. Source:Visualcapitalist.com

The highest paid employees

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

For example, a company dedicated to e-commerce like Amazon has a large team dedicated to the development of the company’s software, but also to the preparation of orders, with a huge difference between their salaries.

1- Goal

That said, Meta is positioned as the company with the best average salary of the seven companies, with an average salary of $379,050 a year, which represents an increase of 28% compared to 2022. Meta has a workforce of 67,317 employees, of which the majority are software engineers. This makes the average salary quite high.

Mark Zuckerberg, as CEO of Meta, has an assigned salary of 24.4 million annually. 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 company with the highest paid employees in the club of seven. Its employees receive an average salary of $315,531. As is the case at Meta, most of the company’s positions are dedicated to software development, so this specialization makes their salary range quite high.

Sundar Pichai receives an annual salary of 8.8 million dollars, which represents a differential ratio of 27.88 times between the salary of his CEO and the average of his employees.

3- NVIDIA

The official average salary of NVIDIA employees is $266,939 annually. In this case, it should be noted that this is what its employees receive as an annual salary, but NVIDIA offers its users discounted stock purchase plans. These purchase plans have made many of its employees millionaires.

Thanks to the company’s good financial results, Jensen Huang has received $34.2 million, which represents an increase of 60% compared to the previous year. That represents a 128.11 times greater difference between the CEO of NVIDIA and his employees.

4- Microsoft

Until just a few days ago, Microsoft remained the most valuable company in the club of the magnificent, now surpassed by NVIDIA. Microsoft’s average salary is of $193,770.

According to the data from the analysis of The Wall Street JournalSatya 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 in market capitalization falls to the bottom of the table in terms of salaries of its employees, setting the average at $94,118 per year. In this average, the presence of customer service staff at Apple stores is noticeable, with salaries that are not comparable to those of the majority of engineering employees at other technology companies.

In contrast, Tim Cook has stepped on the accelerator in his annual remuneration for 2023, obtaining a total salary compensation of 63.2 million dollars. This marks one of the largest salary differences on the list, with Tim Cook’s salary being 671.49 times higher than the average salary of his employees.

6-Tesla

Tesla’s salaries are those that, perhaps, make the most difference with the big technology companies, given that most of its staff occupy a position in the different sections of the assembly lines of their cars. Therefore, the average salary would be closer to that of an average automotive worker in the United States. The average salary of a Tesla employee is of $45,811.

At Tesla we also find a curious paradox, which is that Elon Musk officially receives a salary of one dollar per year for his work at the head of Tesla. That would leave the company in the strange position that its employees earn 45,800 times more than the company’s CEO.

However, if Elon Musk finally receives his controversial bonus of $46 billion, it would imply an annual salary in arrears since 2018 equivalent to $7,666.66 million annually. In that case, Musk would earn 167,354.27 times more than the average of his employees.

7- Amazon

The company founded by Jeff Bezos closes this salary list of the employees of the magnificent seven. Amazon accuses that a good part of the more than one and a half million employees that the company has around the world are assigned to warehouse logistics and order preparation tasks. The average salary of its employees is between $36,274 annually.

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

In Xataka | The highest-paid CEOs in the technology industry, gathered in a simple graph

Image | visualcapitalist

 
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