‘Most Overpaid CEOs’ Fall Behind on Delivering Returns (2024)

FAQs

Who are the most overpaid CEOs? ›

Media, entertainment and tech companies held their own in the top 25 ranking of overpaid CEOs in 2022 by nonprofit As You Sow. Live Nation's Michael Rapino ($139 million pay package) topped the list, which also included Netflix, Paramount Global and Warner Bros Discovery, as well as Charter, Apple and Alphabet.

1 last year) judging that over $25 million of his $39 million compensation package in 2022 was “overpay.” The figure repped a CEO to worker pay ratio of 227/1.

The salary of CEOs may seem exorbitant because of the steep competitive talent market of executives. This economic rationale is hinged on the interplay of demand and supply for competitive talent of CEOs. Large corporations compete for highly experienced CEOs with a track record to run their companies well.

Company Performance: CEO compensation is often tied to company performance. If a CEO is successful in leading the company to achieve financial growth, increased shareholder value, or improved market position, they may be rewarded with higher compensation as an incentive and recognition of their impact.

When As You Sow compiled its first overpaid CEO list ten years ago, the average pay of the 10 Most Overpaid was $56 million. This year, the average of the top ten was $88 million, an increase over that time period of 59%.

Iger's 2023 pay package included a base salary of $865,385, stock awards totaling $16.1 million, $10 million in stock option awards, $2.1 million in performance-based compensation and $2.48 million in other compensation, according to The Walt Disney Company's annual proxy statement, which was filed Tuesday.

Apple CEO Tim Cook's 2023 compensation of $63,209,845 surpassed the $49 million target by 28%. The pay ratio between Cook and the median compensated employee is 672 to 1. The annual compensation of other top executives, including Luca Maestri, Kate Adams, and Deirdre O'Brien, was also disclosed.

Both “Coyote vs. Acme” and “Batgirl,” along with “Scoob! Holiday Haunt,” were completed films that had been shown to audiences in test screenings.

What Does a CEO Do? CEOs are responsible for managing a company. This may include delegating and directing agendas, driving profitability, managing company organizational structure and strategy, and communicating with the board.

Who makes $100 million a year? ›

Do CEOs and other high level executives work fewer hours than their employees? - Quora. Nope! In reality, they usually work much longer hours plus weekends and evenings. Most employees are working 40 hours a week and possibly some overtime for which they receive additional compensation.

The CEO at the top of the list, Elon Musk, earned almost $81,000 in every minute of the 40-hour workweek in 2021. The table below highlights 12 highly compensated top CEOs in 2021, along with where they work and how much they get paid (figures for 2022 are expected to be released in August).

Base salaries for CEOs vary substantially, depending on the type of industry, the CEO's years of experience and other factors. Typically, boards of directors will form an executive compensation committee that sets a base annual salary, paid monthly or biweekly.

Finally, the fourth reason that contributes to the loneliness of CEOs is the constant pressure to perform. They have to manage a range of stakeholders, including investors, shareholders, customers, and employees. This can be a stressful and demanding task, leaving little time for relaxation or self-care.

GE CEO Jeffrey Immelt spent 24 years putting in 100-hour weeks. A 2005 Fortune article on Immelt describes him as "the Bionic Manager." The article highlights his incredible work ethic, saying he worked 100-hour weeks for 24 years.

The typical American would limit CEO pay to no more than six times that of the average worker. This figure is significantly below current pay multiples, which are approximately 210 times the average worker's pay, based on Equilar's compensation figures.

In the past 10 years, CEO pay at S&P 500 companies increased by more than $5 million to an average of $16.7 million in 2022. Meanwhile, the average U.S. worker saw a wage increase of $15,460 over the past decade, earning on average just $61,900 in 2022. Blackstone Inc.

In an organization or company where a CEO is already in charge, the president is the second in command. In the corporate world, presidents often hold the position of chief operating officer (COO). The COO, responsible for day-to-day operations, has vice presidents for different parts of the company reporting to them.