CEO PAY CONTINUES TO RISE, WILL SHAREHOLDERS STOP IT?
CEO PAY CONTINUES TO RISE, WILL SHAREHOLDERS STOP IT?
On February 25, 2021, As You Sow, a non-profit that strives to promote social corporate responsibility through shareholder advocacy, released their seventh annual report entitled The 100 Most Overpaid CEOs.
According to the report, executives at some of the world’s largest companies pulled in record compensation for the fifth straight year, and median pay for CEOs of these companies reached a staggering $13.1 million. As noted in the report, companies have experienced less shareholder support for excessive CEO compensation packages. Notably, the largest opponents of CEO compensation are U.S. public pension funds and European financial managers; however, U.S. based financial managers continue to support the compensation packages awarded to CEOs.
As CEOs and other high level executive officers continue to benefit from ever increasing compensation packages, shareholders, as well as the companies themselves, need to re-evaluate the structure of executive compensation, otherwise companies may lose the support of their shareholders and largest investors.
A link to the full report can be found here.
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