REVEALED: Google’s Sundar Pichai tops listing of the 100 ‘most overpaid’ CEOs with bundle price $281M – after new research 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 median of $21.3 million
- The report urges largest shareholders to crack down on govt pay
A brand new research ranks the 100 most ‘overpaid’ CEOs in America, with Google‘s Sundar Pichai topping the listing after incomes $281 million.
CEO pay elevated 14 p.c in 2019 from the yr earlier than, to a median of $21.3 million, in accordance with the ‘100 Most Overpaid CEOs’ study launched on Thursday by nonprofit group As You Sow.
The report compares govt 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 p.c of Pichai’s pay is extreme, and word that he earns greater than 1,000 instances the wage of a median Google worker.
Google CEO Sundar Pichai was probably the most overpaid CEO in 2019, with a compensation bundle of $281 million, in accordance with a brand new report
The report additionally argued that many firms had been ‘repeat offenders,’ the worst being Discovery, Disney, and Comcast.
High 10 Most Overpaid CEOs
- Sundar Pichai: Alphabet Inc.
- David M. Zaslav: Discovery
- Larry J. Merlo: CVS Well being
- John C. Plant: Howmet Aerospace
- Robert Iger: Walt Disney Firm
- Miguel Patricio: Kraft Heinz
- Robert H. Swan: Intel Company
- Alan B. Miller: Common Well being Companies
- Sheldon Adelson: Las Vegas Sands Company.
- Lachlan Murdoch: Fox Company
The CEOs of these three firms have been paid greater than $744 million in three years, though the companies have constantly underperformed financially, the research 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 research.
‘In the meantime, as this report notes, employee wages now signify a decrease share of the financial system than virtually any time because the Nineteen Forties,’ he added. ‘This disaster of inequality makes motion on CEO pay all of the extra vital.’
Govt compensation schemes are accredited 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, massive pension funds, and funding managers akin to 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’.
Simply 2 p.c of fund managers at BlackRock voted towards S&P 500 compensations, and solely 8 p.c voted towards the businesses listed on the brand new extra pay research, 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 research urges fund managers to crack down on the upcoming spring proxy season, when most annual shareholder conferences happen.
The upcoming conferences will assess govt pay for 2020, when many firms suffered within the coronavirus pandemic.
‘Over the seven years we have been doing these stories we have been happy to see elevated opposition to extreme CEO pay from many funds,’ mentioned the research writer Rosanna Landis Weaver.
‘This yr we seemed on the votes in a brand new approach. We found that twin class inventory and insider possession can generally masks the true extent of shareholder opposition,’ she added.
‘And — maybe not surprisingly, some firms which might be most insulated from the desire of all shareholders — have among the most overpaid CEOs.’
The highest 25 ‘most overpaid’ CEOs in 2019 are listed above