A new analysis shows that CEOs at major US companies have received multimillion-dollar bonuses or salary increases over the past year, even as many companies have experienced sales declines and job cuts due to the pandemic.
According to “CBS News”; Compensation for CEOs in the 350 largest companies jumped nearly 19% in 2020 to an average of $24.2 million, according to the Economic Policy Institute (EPI), a liberal-leaning think tank.
By comparison, average workers' wages last year rose about 4%, with the typical corporate president at big companies in 2020 making $351 for every dollar earned by an average employee at the same company, up from 307 in 2019, according to the EPI.
Lawrence Michel, an economist who co-wrote the analysis, said that some companies have promoted salary cuts for CEOs to reflect the impact of the pandemic on business, but they have had little effect. But it was symbolic at best and fake at worst.
The bonuses and salaries paid out last year vary in terms of the company’s size and field of work, for example, David Gibbs, CEO of Yum Brands, received a bonus of $ 9.5 million, while Frank Del Rio, CEO of Norwegian Shipping, received Annual bonus of $3.6 million plus a one-time special payment of $2.8 million.
Hilton CEO Christopher Nassetta received additional shares in the company worth at the time $13.7 million, and this comes as Yum Brands, Norwegian Shipping and Hilton all announced layoffs, furloughs or reduced profits at some point during the pandemic. Hilton laid off 2,100 employees in June 2020.
Top executives at Advance Auto Parts, Carnival Cruise Line and other well-known brands have also seen their pay rises, and company officials have justified the pay increase by saying they need to increase compensation to prevent their leaders from leaving their posts.
The EPI noted that most of the CEO pay increases were caused by corporate boards giving more company stock to senior executives, and with the stock market hitting record levels last year, so too did the CEO’s total compensation, and most leaders of large companies get a large part of their salary.
CEO pay rises have long been a target of big company critics, but 8-figure paydays can seem out of place when compared to the financial hardships that many families experienced during last year's coronavirus pandemic.
Democratic lawmakers introduced legislation this year aimed at curbing CEO pay, and the Excessive CEO Pay Act would penalize companies that pay CEOs or other employees 50 times the average wage for workers, and the bill is making its way Through Congress, but faces a daunting ascent.
The EPI study aligns with research published earlier this year by the left-leaning Institute for Policy Studies, which found that CEO pay packages have been adjusted in the past year, improving bonuses for CEOs during the pandemic, while lowering workers' wages. Ordinary.
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