REVEALED: Google’s Sundar Pichai tops listing of the 100 ‘most overpaid’ CEOs with bundle value $281M – after new examine in contrast salaries to shareholder return
- New report examines CEO pay compared to shareholder returns over time
- Finds Google’s Sundar Pichai’s $281 million pay bundle probably the most extreme
- CEO pay elevated 14% from 2018 to 2019, to a mean of $21.3 million
- The report urges largest shareholders to crack down on government pay
A brand new examine ranks the 100 most ‘overpaid’ CEOs in America, with Google‘s Sundar Pichai topping the listing after incomes $281 million.
CEO pay elevated 14 % in 2019 from the 12 months earlier than, to a mean of $21.3 million, based on the ‘100 Most Overpaid CEOs’ study launched on Thursday by nonprofit group As You Sow.
The report compares government compensation to an organization’s shareholder return over the previous 5 years to find out ‘extra’ CEO pay, and urges main shareholders to crack down on exorbitant compensation.
For Google, the authors argue that some 95 % of Pichai’s pay is extreme, and observe that he earns greater than 1,000 instances the wage of a mean Google worker.
Google CEO Sundar Pichai was probably the most overpaid CEO in 2019, with a compensation bundle of $281 million, based on a brand new report
The report additionally argued that many firms had been ‘repeat offenders,’ the worst being Discovery, Disney, and Comcast.
Top 10 Most Overpaid CEOs
- Sundar Pichai: Alphabet Inc.
- David M. Zaslav: Discovery
- Larry J. Merlo: CVS Health
- John C. Plant: Howmet Aerospace
- Robert Iger: Walt Disney Company
- Miguel Patricio: Kraft Heinz
- Robert H. Swan: Intel Corporation
- Alan B. Miller: Universal Health Services
- Sheldon Adelson: Las Vegas Sands Corporation.
- Lachlan Murdoch: Fox Corporation
The CEOs of these three firms have been paid greater than $744 million in three years, although the companies have constantly underperformed financially, the examine mentioned.
‘Amid a worldwide pandemic that decimated the financial system, billionaires — CEOs amongst them — have seen their wealth skyrocket,’ mentioned former Secretary of Labor Robert Reich in an announcement on the brand new examine.
‘Meanwhile, as this report notes, employee wages now symbolize a decrease share of the financial system than virtually any time because the Forties,’ he added. ‘This disaster of inequality makes motion on CEO pay all of the extra vital.’
Executive compensation schemes are permitted by an organization’s board of administrators, who’re elected by the shareholders, giving main shareholders the ultimate energy over CEO pay.
At most firms, giant pension funds, and funding managers resembling BlackRock and Vanguard, wield appreciable shareholder voting energy.
The report suggests fund managers are ‘blindly following the advice of administration to approve extreme CEO pay packages’.
Just 2 % of fund managers at BlackRock voted towards S&P 500 compensations, and solely 8 % voted towards the businesses listed on the brand new extra pay examine, the authors mentioned.
Discovery CEO David M. Zaslav was ranked second on the listing with pay of $46 million
CVS CEO Larry J. Merlo (left, $36 million) was ranked third and Howmet Aerospace CEO John C. Plant (proper, $52 million) was ranked fourth
The examine urges fund managers to crack down on the upcoming spring proxy season, when most annual shareholder conferences happen.
The upcoming conferences will assess government pay for 2020, when many firms suffered within the coronavirus pandemic.
‘Over the seven years we have been doing these studies we have been happy to see elevated opposition to extreme CEO pay from many funds,’ mentioned the examine writer Rosanna Landis Weaver.
‘This 12 months we regarded on the votes in a brand new approach. We found that twin class inventory and insider possession can typically masks the true extent of shareholder opposition,’ she added.
‘And — maybe not surprisingly, some firms which are most insulated from the need of all shareholders — have a number of the most overpaid CEOs.’
The high 25 ‘most overpaid’ CEOs in 2019 are listed above