Home Stock CEO salaries increased by nearly 15% during the pandemic

CEO salaries increased by nearly 15% during the pandemic

CEO salaries skyrocketed in 2020, a year of historic business turmoil, a tough labor market for many workers, and unprecedented challenges for many leaders.

According to an analysis by the Wall Street Journal, the median salary for the executives of more than 300 of America’s largest public companies reached $ 13.7 million last year, up from $ 12.8 million for companies. similar a year earlier and hitting record.

Wages continue to rise into 2020 as some companies change their performance goals or modify their pay structure in response to the COVID-19 pandemic and the accompanying economic pain. The salary cuts CEOs made deep down in the crisis have had little effect. The stock market’s rally drove top executives to take in as the majority of their compensation came in the form of equity.

In some cases, investors responded by withholding support for corporate pay practices in annual advisory votes, increasing the pressure on corporate boards. According to pay data firm Equilar, with the annual meeting season just getting started – 80% of the S&P 500 still don’t have their votes, according to pay data firm Equilar – shareholders have Give a thumb down to arrange payment at dozens of major companies, including Starbucks Corp. and Walgreens Boots Alliance Inc.

“I don’t think we’ve seen anything like this before in terms of the amount of change they have,” said Shaun Bisman, a corporate governance and payroll consultant at Partnership Compensation. We have seen in incentives ”during the New York pandemic.

Salaries rose for 206 of the 322 CEOs in the Journal’s analysis, using data for S&P 500 companies from research firm MyLogIQ. The average increase is close to 15%. The magazine uses figures reported by companies in their legal records, evaluating the value of equity rewards on the date of issue.

An expanded version of this report appears on WSJ.com.

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