CEO pay up 17 per cent as profits, stocks soar; workers fall behind

2022-05-26 3:45:00 PM

CEO pay up 17 per cent as profits, stocks soar; workers fall behind

CEO pay up 17 per cent as profits, stocks soar; workers fall behind

Even when regular workers win their biggest raises in decades, they look minuscule compared with what CEOs are getting. The typical compensation package for chief executives who run S&P 500 companies soared 17.1 per cent last year, to a median US$14.5 million, according to data analyzed for The Associated Press by Equilar.

The gain towers over the 4.4 per cent increase in wages and benefits netted by private-sector workers through 2021, which was the fastest on record going back to 2001. The raises for many rank-and-file workers also failed to keep up with inflation, which reached 7 per cent at the end of last year.

The CEOs often can't cash in on such stock or options for years, or possibly ever, unless the company meets performance targets. But companies still must disclose estimates for how much they're worth. Only about a quarter of the typical pay package for all S&P 500 CEOs last year came as actual cash they could pocket.

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NEW YORK - Even when regular workers win their biggest raises in decades, they look minuscule compared with what CEOs are getting.EGLX-T largest shareholder has launched an unusually personal proxy fight to replace the company’s chief executive officer and a majority of its board of directors, a battle that could ultimately oust the team that put the organization together.Around 3 p.Create Free Account Leading shareholder advisory firms are opposing a Shopify Inc.

The typical compensation package for chief executives who run S&P 500 companies soared 17.1 per cent last year, to a median US$14. Montgomery for a number of years and whose family owns the Vancouver Canucks.5 million, according to data analyzed for The Associated Press by Equilar. Story continues below advertisement 'Targeted harassment' Geldert-Hautala, who is originally from Nelson, B. The gain towers over the 4. Greywood is focused on replacing Enthusiast’s leadership, and singles out Mr.4 per cent increase in wages and benefits netted by private-sector workers through 2021, which was the fastest on record going back to 2001. Proxy advisory firm Institutional Shareholder Services Inc.

The raises for many rank-and-file workers also failed to keep up with inflation, which reached 7 per cent at the end of last year. Enthusiast, a media and gaming company, went public through a three-way merger in 2019, and its shares took off in the fall of 2020, soaring from roughly $1. He told Global News that as a child he was placed in a residential school and struggled to feel comfortable in most housing situations. CEO pay took off as stock prices and profits rebounded sharply as the economy roared out of its brief 2020 recession. Because much of a CEO's compensation is tied to such performance, their pay packages ballooned after years of mostly moderating growth. The past year has been misery for shareholders, however, with the stock losing three-quarters of its value and falling to $2. In many of the most eye-popping packages, such as Expedia Group's, valued at US$296. “This is our land.2 million and JPMorgan Chase's US$84. While some of this performance likely has to do with the recent technology stock selloff, Enthusiast has also struggled to make money.” ISS noted Mr.

4 million, boards gave particularly big grants of stock or stock options to recently appointed CEOs navigating their companies through the pandemic or to established leaders they wanted to convince to hang around. The CEOs often can't cash in on such stock or options for years, or possibly ever, unless the company meets performance targets. “Our review has highlighted significant issues with the company’s culture and governance, with the former attributable to Mr. “I believe there is a possibility of the ongoing targeted harassment. But companies still must disclose estimates for how much they're worth. Only about a quarter of the typical pay package for all S&P 500 CEOs last year came as actual cash they could pocket. Many of the allegations have not yet been independently verified, but Greywood said it held discussions with “industry players, executive recruiters, prior employees, current employees, shareholders and other stakeholders. Whatever its composition, the chasm in pay between CEOs and the rank-and-file workers they oversee keeps widening. She added that they were insisting that he needed to step out of his encampment to receive it — which he was advised against doing by his lawyers. Stiege said there does not “appear to be sufficient rationale that suggests the proposed multi-class share structure should potentially be perpetuated in the form presented.

At half the companies in this year's pay survey, it would take the worker at the middle of the company's pay scale at least 186 years to make what their CEO did last year. Montgomery and the many dysfunctional management relationships. That's up from 166 a year earlier. At Walmart, for example, the company said its median associate made US$25,335 in compensation last year. Enthusiast did not return a request for comment.” “A lot of the neighbours in the condo buildings have befriended him, they bring their dogs, they come to hang out,” Pabani said. That means half its workers made more, and half made less. That's up 21 per cent from US$20,942 a year earlier and came as the company's average hourly U. The public letter is not signed by any individuals, solely by “Greywood LLC,” and a website or history of the investment firm could not be located. The price of Shopify’s stock has sunk more than 80 per cent since its late 2021 peak.

S. Geldert-Hautala has no immediate desire to leave, instead hoping to use the park as a space for others experiencing homeless to get services. wage rose from US$15. Greywood did not return a request for comment.25 in March 2021 to more than US$17 currently. That increase was bigger than the raise CEO Doug McMillon got, on a percentage basis. Collectively, entities tied to the two individuals own 9. “That means helping other people. But his 13. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening.

7 per cent raise netted him a total package valued at US$25. Preston is a managing member.7 million. Anger is growing over such an imbalance. Enthusiast’s annual general meeting is scheduled for June, which means Greywood is going public with its intentions in an unusually tight window. Surveys suggest Americans across political parties see CEO pay as too high, and some investors are pushing back. Workers are trying to organize unions across the country, and the "Great Resignation" has emboldened millions to quit to find better jobs elsewhere. Montgomery and Enthusiast’s board of directors, but was rebuffed.

The U.S. It has become apparent to us that this board works for the CEO,” Greywood wrote. government counted more than 4 million quits during April 2021 alone, the first time that happened. The monthly number has since topped 4. Montgomery and Mr.5 million twice.

"That is going to add a huge cost to corporate bottom lines, to have these kind of turnover rates," said Sarah Anderson, director of the global economy project at the progressive Institute for Policy Studies., another of their entities, as well as with Enthusiast Gaming Properties Inc. "They should be thinking about what kind of message they're sending to those people, about whether they're really valued in their jobs," Anderson said. "When the guy in the corner office is making several hundred if not thousands of times more, that's sending a really demoralizing message. Enthusiast mostly operates in the video-game industry and has three divisions – media and content, subscriptions, and e-sports and entertainment." Gains for CEO pay had been slowing in recent years, with the median rise easing from 8.5 per cent in 2017 to 4. Enthusiast makes money by selling advertising on these platforms.

1 per cent in 2019. It ticked back up to 5 per cent in 2020, which was a complicated year because the pandemic shut down the economy and profits at many companies tanked. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. For 2020, many companies rejiggered the intricate formulas they created to determine their CEOs' pay. The tweaks made up for losses caused by the pandemic, something many boards said was an extraordinary event outside the CEO's control. Then came 2021.

Thanks to a reopened economy, super-low interest rates from the Federal Reserve and other factors, stock prices soared and the S&P 500 jumped nearly 27 per cent, setting records through the year. Earnings per share soared roughly 50 per cent. Throughout the year, CEOs had to navigate snarled supply chains and shortages of chips and other key materials that impacted businesses across industries, said Dan Laddin, a partner at Compensation Advisory Partners, a consulting firm that works with boards. "All this led to a desire to really reward" executives, said Kelly Malafis, also a partner at Compensation Advisory Partners, "because the financial performance was there, and the view was that management teams were exceptional in navigating the situation and delivering results." Last year's 17.

1 per cent leap for median pay of S&P 500 CEOs was the biggest since a 23.9 per cent surge for 2010 compensation packages, according to the data analyzed by Equilar. Consider Mary Barra, CEO of General Motors. Her industry was particularly hard hit by the shortage of computer chips, which snarled auto production. Even so, GM's board highlighted how the company still delivered record earnings before interest, taxes and some other items.

The automaker also accelerated development of its electric vehicles. Those are two of the factors that influence Barra's pay, and her compensation climbed 25.4 per cent to US$29.1 million. "I would hope that the corporation making record profits would recognize that the workers doing the work are the ones generating the revenue," said Dave Green, a hot metal driver at a GM facility in Bedford, Indiana.

"We're just trying to get by." He cited in particular temporary workers making roughly US$16 hourly, who have to work years before coming on as full-time employees and don't get many opportunities for days off in the meantime. "The new people coming in, their kids are not going to be able to have the opportunities my kids had," said Green, who has two daughters and started at GM as a summer helper in 1989. Closer to the top of the rankings for CEO pay last year was JPMorgan Chase's Jamie Dimon, whose compensation package valued at US$84.4 million was the fifth-highest in the AP survey.

That was up 166.7 per cent from a year earlier, and most of it came from an award of stock options valued at US$52.6 million. The board said it provided the options because of its desire for Dimon, who is 66, to keep leading the company for significantly more years and a "unique inflection point in Mr. Dimon's tenure.

" It also said the options weren't a part of his regular annual compensation and that he must wait at least five years to begin exercising them. Even so, only 31 per cent of investors at JPMorgan Chase's annual meeting of shareholders recently gave a thumbs up on Dimon's pay package. The vote is only advisory, though, and doesn't force the company to make changes. Last year, a median of 92.6 per cent of shareholders approved what's called their "Say On Pay" vote in the AP's survey.

That was down just a bit from 93.4 per cent the year before. The AP's and Equilar's compensation study included pay data for 340 CEOs at S&P 500 companies who have served at least two fiscal years at their companies, which filed proxy statements between Jan. 1 and April 30. Some high-profile CEOs are not included because they don't fit the criteria, such as Amazon's Andy Jassy and Twitter's Parag Agrawal.

The survey does not count changes in the value of CEOs' pension benefits and some other items in its totals for compensation. .