Fair500

Fair500Sectors → Industrials

Industrials: pay and profit in the S&P 500

The largest sector in the index at 79 companies, and the most ordinary. Its median ratio of 177:1 and median worker pay of $70,831 sit close to the middle of everything.

79
companies covered
177:1
median CEO-to-worker pay ratio
$70,831
median worker pay (sector midpoint)
$45,049
profit per employee (midpoint)

Industrials is the biggest sector in the S&P 500 and the most representative. It spans aerospace, defence, machinery, railroads, airlines, building products, waste services and staffing, and its median ratio of 177:1 sits just below the index median of 196:1. Its range, from 46:1 to 698:1, is wide without being extreme.

The widest gaps: building products and aerospace

Carrier Global tops the sector at 698:1, on a median of $46,976 across 47,000 employees and a three-year average package of $32.8 million. Otis Worldwide at 421:1 and Trane Technologies at 385:1 follow the same pattern, with global manufacturing and field-service workforces with a substantial share in lower-cost markets, and medians in the $47,000–$68,000 range.

Vertiv has the sector's lowest median at $27,811 across 34,000 employees, producing 441:1 on a comparatively modest $12.3 million package. This is the offshore-manufacturing pattern that dominates the technology hardware companies.

Aerospace is different. GE Aerospace posts 530:1 on a median of $93,873, a well-paid workforce by any standard, with three-year average CEO compensation of $49.8 million, the largest in the sector. There is no compositional explanation available here; this is a pay-package story. Howmet Aerospace at 526:1 on a $63,551 median is similar, its $33.4 million average inflated by a $70.5 million most-recent year.

Axon Enterprise at 404:1 is the sector's most unusual entry. Its median of $135,696 is among the highest in the industry, and its ratio comes entirely from a $164.5 million grant inside the three-year window that averages to $54.9 million. Axon was excluded from earlier versions of this site by a blunt founder-pay rule; smoothing is what allowed it to be included.

The narrow end: railroads and distribution

The railroads pay very well and post narrow ratios. Norfolk Southern at 80:1 on a median of $118,895, CSX at 96:1 on $122,362, Union Pacific at 99:1 on $134,454. These are unionised, skilled, full-time workforces with no low-wage population, the same structural situation as utilities.

Copart has the sector's narrowest ratio at 46:1, and it is a genuine case of executive restraint rather than a high median: $44,620 median pay against just $2.1 million of average CEO compensation. Fastenal at 63:1 on $47,287 and $3.0 million is the same story. Both are companies with modest workforce pay whose chief executives are paid a fraction of what peers receive.

Eaton at 91:1 across 97,000 employees is notable for achieving a narrow ratio at scale, on a $5.6 million package.

Profit per employee

The sector median is $45,049, below the index norm, because industrials are labour-intensive by construction. The top of the range belongs to the railroads and asset-light platforms: Union Pacific at $230,478, Uber at $213,824, CSX at $145,217, GE Aerospace at $144,737, Paccar at $143,243.

Union Pacific is the sector's best combined result: high profit per employee, a $134,454 median that is among the highest in the industry, and a 99:1 ratio. The railroads generally score well on both of Fair500's measures, which is uncommon.

Caterpillar generates the sector's largest absolute profit at $10.0 billion, followed by GE Aerospace at $8.2 billion, Deere at $7.4 billion and Uber at $7.3 billion. Deere's median worker pay of $147,019 is the highest in the sector.

Boeing

Boeing is the sector's only loss-maker, having averaged a loss across the three-year window, and appears in the map's "lost money" band. Its median worker pay of $141,933 is the second highest in the sector, reflecting a highly skilled and heavily unionised workforce, and it is scored neutrally on the pay-versus-profit measure, since a company with no profit has none to share.

Every industrial company in the S&P 500

Every Industrials company in the S&P 500 covered by Fair500 (79), ranked by CEO-to-worker pay ratio. Scroll sideways for more columns.
CompanyPay ratioMedian worker payCEO pay (3-yr avg)Profit (3-yr avg)Employees
Carrier GlobalCARR698:1$46,976$32.8M$2.8B47,000
GE AerospaceGE530:1$93,873$49.8M$8.2B57,000
Howmet AerospaceHWM526:1$63,551$33.4M$1.1B25,430
VertivVRT441:1$27,811$12.3M$0.8B34,000
Otis WorldwideOTIS421:1$59,408$25.0M$1.5B72,000
WabtecWAB406:1$51,471$20.9M$1.0B31,000
Axon EnterpriseAXON404:1$135,696$54.9M$0.2B5,100
Trane TechnologiesTT385:1$67,812$26.1M$2.5B44,000
Emerson ElectricEMR376:1$52,916$19.9M$5.8B71,447
United Parcel ServiceUPS354:1$66,268$23.4M$6.0B460,000
TransDigm GroupTDG344:1$68,247$23.5M$1.7B16,500
UberUBER335:1$98,826$33.1M$7.3B34,000
Dover CorporationDOV327:1$55,766$18.3M$1.6B24,000
3MMMM317:1$66,524$21.1M$0.1B60,500
Johnson ControlsJCI299:1$66,795$20.0M$2.3B87,000
United Airlines HoldingsUAL292:1$96,670$28.3M$3.0B113,200
Rockwell AutomationROK291:1$55,692$16.2M$1.1B26,000
CumminsCMI285:1$63,834$18.2M$2.5B67,400
Parker HannifinPH275:1$66,034$18.2M$2.8B57,950
Delta Air LinesDAL266:1$100,976$26.9M$4.4B100,000
GE VernovaGEV259:1$63,902$16.6M$2.0B75,000
C.H. RobinsonCHRW256:1$62,176$15.9M$0.5B11,855
PaccarPCAR254:1n/a$17.0M$3.7B25,900
FedExFDX253:1$50,791$12.8M$4.1B440,000
AmetekAME239:1$63,719$15.2M$1.4B22,500
Automatic Data ProcessingADP226:1$67,434$15.2M$3.8B67,000
General DynamicsGD224:1$107,485$24.1M$3.8B117,000
Northrop GrummanNOC220:1$112,998$24.8M$3.5B95,000
EquifaxEFX215:1$79,492$17.1M$0.6B15,000
Ingersoll RandIR214:1$75,422$16.1M$0.7B21,000
Honeywell TechnologiesHON208:1$85,048$17.7M$5.4B101,000
Illinois Tool WorksITW208:1$73,094$15.2M$3.2B43,000
L3HarrisLHX198:1$111,832$22.1M$1.3B45,000
PentairPNR198:1$54,012$10.7M$0.6B9,000
Deere & CompanyDE187:1$147,019$27.5M$7.4B73,100
VeraltoVLTO186:1$64,169$11.9M$0.9B17,000
Broadridge Financial SolutionsBR183:1$79,503$14.6M$0.7B15,000
TextronTXT183:1$111,269$20.4M$0.9B34,000
Lockheed MartinLMT179:1$130,614$23.3M$5.8B123,000
Stanley Black & DeckerSWK177:1$47,897$8.5M$0.1B43,500
Verisk AnalyticsVRSK174:1$68,933$12.0M$0.8B8,000
Waste ManagementWM169:1$100,067$16.9M$2.6B60,500
Snap-onSNA166:1$62,691$10.4M$1.0B13,000
Huntington Ingalls IndustriesHII165:1$85,536$14.2M$0.6B44,000
Xylem Inc.XYL164:1$66,535$10.9M$0.8B22,000
Republic ServicesRSG163:1$79,734$13.0M$2.0B42,000
W. W. GraingerGWW160:1$67,858$10.9M$1.8B25,000
RTX CorporationRTX154:1$120,092$18.5M$4.9B180,000
EmcorEME153:1$87,632$13.4M$1.0B44,000
FortiveFTV153:1$94,172$14.4M$0.8B10,000
Hubbell IncorporatedHUBB152:1$64,210$9.8M$0.8B18,000
Quanta ServicesPWR150:1$102,192$15.3M$0.9B69,500
BoeingBA148:1$141,933$21.0M−$3.9B182,000
Old DominionODFL142:1$79,034$11.2M$1.1B20,591
Jacobs SolutionsJ140:1$87,962$12.4M$0.6B43,000
United RentalsURI137:1$88,098$12.0M$2.5B28,500
Caterpillar Inc.CAT132:1$89,253$11.8M$10.0B118,000
MascoMAS127:1$52,107$6.6M$0.8B18,000
Nordson CorporationNDSN127:1$62,650$7.9M$0.5B8,000
Southwest AirlinesLUV127:1$95,715$12.2M$0.5B72,790
Comfort Systems USAFIX126:1$67,118$8.5M$0.6B22,700
AllegionALLE124:1$71,659$8.9M$0.6B13,300
Rollins, Inc.ROL123:1$65,116$8.0M$0.5B21,946
Lennox InternationalLII122:1$63,587$7.8M$0.7B12,900
A. O. SmithAOS117:1$44,976$5.3M$0.6B11,500
Expeditors InternationalEXPD117:1$52,350$6.1M$0.8B20,000
GeneracGNRC117:1$72,040$8.4M$0.2B4,200
CintasCTAS116:1$73,899$8.5M$1.6B48,300
IDEX CorporationIEX116:1$75,575$8.7M$0.5B8,700
PaychexPAYX110:1$70,003$7.7M$1.6B19,000
J.B. HuntJBHT109:1$76,432$8.3M$0.6B31,750
LeidosLDOS101:1$120,427$12.1M$1.0B47,000
Union Pacific CorporationUNP99:1$134,454$13.3M$6.8B29,287
CSX CorporationCSX96:1$122,362$11.7M$3.3B23,000
Eaton CorporationETN91:1$61,945$5.6M$3.7B97,000
Norfolk SouthernNSC80:1$118,895$9.5M$2.4B19,400
Builders FirstSourceBLDR67:1$74,761$5.0M$1.0B28,000
FastenalFAST63:1$47,287$3.0M$1.2B24,489
CopartCPRT46:1$44,620$2.1M$1.4B11,600

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