CEO pay still on the rise

Los Angeles Times - - TECHNOLOGY - By Sa­man­tha Ma­sunaga For more busi­ness news, fol­low @sma­sunaga.

Chief ex­ec­u­tives of the coun­try’s largest firms made 303 times more than a “typ­i­cal” worker in 2014, ac­cord­ing to a re­port from the Eco­nomic Pol­icy In­sti­tute, a left­lean­ing think tank.

That num­ber seems high but is lower than it was in 2000, when CEO com­pen­sa­tion peaked at 376 times that of the av­er­age worker.

The re­port found that av­er­age com­pen­sa­tion in 2014 for chief ex­ec­u­tives of the largest f irms was $ 16.3 mil­lion, up 3.9% from a year be­fore and an in­crease of 54.3% since 2009 when the econ­omy be­gan to re­cover.

Bro­ken down more sim­ply, the re­port says CEOs earn three times more than they did 20 years ago.

The re­port said the in­crease in CEO com­pen­sa­tion ref lects “im­prov­ing mar­ket con­di­tions” and a “gen­eral rise in prof­itabil­ity,” which also boosted cor­po­rate stock prices.

CEO com­pen­sa­tion of­ten in­creases when the stock mar­ket rises and f irms’ stock prices in­crease with it, the re­port said. In fact, most CEO pay pack­ages al­low com­pen­sa­tion to in­crease when­ever the f irm’s stock value rises, ac­cord­ing to the re­port.

The re­port cal­cu­lated av­er­age CEO com­pen­sa­tion based on data from the 350 pub­licly owned f irms in the U. S. with the largest rev­enue each year, and in­cludes stock op­tions ex­er­cised in a given year.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.