“Most People do not thoughts a lot when CEOs make some huge cash in the event that they carry out”, Jackson stated.
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The ratio between CEO David M. Zaslav’s pay and the median pay of Discovery workers is 1,951 to 1, according to the study.
Earlier this month, the Securities and Exchange Commission approved a rule that will require companies, starting in 2017, to disclose a simple calculation: At what multiple is the chief executives’ compensation vs. the median-compensated worker.
Discovery Communications topped a list of companies with the largest pay difference between their chief executives and median workers, according to a new study by jobs and recruiting company Glassdoor. The median worker pay was $146,120, and CEO Mark Zuckerberg’s compensation was $610,455. “But all of them suffer from a basic problem: CEO compensation is widely available for public companies, but information about average worker pay is not, making it hard to accurately report the ratio of CEO pay to average worker pay”. Companies with the largest pay gap include Oracle, where the CEO makes more than $67 million, that’s 573 time’s more than its average worker that makes $117,000 a year.
Hargrove also said that Glassdoor’s effort at consistency – it used 2014 compensation for almost all CEOs, in order to compare similar year figures – meant its analysis did not use the company’s most recent, and lower, tally for CEO pay.
When it comes to the disparity of pay between a company’s CEO and his workers, Chipotle Mexican Grill Inc.’s Steve Ells is second in the country.
Glassdoor pulled employees’ salary reports from its platform and compared it to companies in the S&P 500. Only companies for which Glassdoor had 30 or more worker salary reports were included.
“Executive pay has always been controversial”.
Retailers and fast-food restaurants are heavily represented near the top of the list, an unsurprising outcome given the high numbers of hourly paid employees in such industries.
Facebook had the fourth lowest ratio: 4.
Chamberlain says it’s important to note that CEO compensation is highly volatile from year to year.
Instead Kartsotis, one of the initial investors in the company said ‘his primary compensation is met by continuing to drive stock price growth’. “As a result, total pay is likely underreported for workers, which could overstate CEO pay ratios”, he says. Employees on Glassdoor rated their satisfaction at 3.4 out of 5, which isn’t bad or great, just middling.
It is unclear whether or not the varied research on CEO pay have influenced public or shareholder opinion, specialists say.
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So will this requirement have an impact on CEO salaries? He believes this will impact all companies, prompting change even in those with the smallest gaps. Companies like Fossil, Google and Kinder Morgan, all of which have founder-CEOs who had basically no new compensation in 2015, had ratios of zero. “We may also see executive boards and companies who either raise employee pay or perhaps lower CEO and executive pay”.
