The Covid-19 pandemic toppled many companies, but did not offset the compensation for most business leaders.
The average salary for CEOs of more than 300 of the largest U.S. public companies last year reached $ 13.7 million, up from $ 12.8 million for the same companies a year earlier and on the way to a record, according to an analysis in the Wall Street Journal.
Payments continued to rise in 2020, as some companies shifted performance targets or changed payment structures in response to the Covid-19 pandemic and the accompanying economic pain. The pay cuts that CEOs took in the depths of the crisis had little effect. The return of the stock market has stimulated what top executives have taken home, as much of their compensation comes in the form of equity.
In some cases, investors responded by withholding support for the company’s salary practices in annual advisory votes, increasing pressure on boards of directors. Only since the start of the annual meeting season – 80% of the S&P 500 have not yet been able to hold their votes, according to payroll company Equilar – shareholders have given their thumbs up to pay arrangements to a dozen large companies, including Starbucks Corp Walgreens Boots Alliance Inc.
“I don’t think I’ve ever seen anything like it in terms of the number of changes we’ve seen in stimulus plans,” said Shaun Bisman, a payroll and corporate governance consultant at Compensation Advisory Partners in Newfoundland. York.