CEOs don't want this released': US study lays bare extreme pay-ratio problem

The first comprehensive study of the massive pay gap between the US executive suite and average workers has found that the average CEO-to-worker pay ratio has now reached 339 to 1, with the highest gap approaching 5,000 to 1.

The study, titled Rewarding Or Hoarding?, was published on Wednesday by Minnesota’s Democratic US congressman Keith Ellison, and includes data on almost 14 million workers at 225 US companies with total annual revenues of $6.3tn.

Just the summary makes for sober reading.

In 188 of the 225 companies in the report’s database, a single chief executive’s pay could be used to pay more than 100 workers; the average worker at 219 of the 225 companies studied would need to work at least 45 years to earn what their CEO makes in one.

The Guardian

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Say on pay 2.0: Investors at Tampa Bay area public companies scrutinize new pay disclosures

As public companies in Tampa Bay and elsewhere hold their annual shareholder meetings in the coming weeks, investors are keeping their eyes on a newly disclosed measure: how the CEO’s pay compares to the pay of the median worker at the company.

The new measure gives shareholders more information to consider as they cast “say on pay” advisory votes on executive compensation, which generally has been growing at a faster pace than rank-and-file employee pay. Most companies say increased executive pay results from improved corporate performance. 

Critics say it is an indication of widening income inequality in the United States.

The CEO-to-worker pay ratio is raising questions about recruiting and retaining talent in a highly competitive workforce environment, and boards of directors are monitoring it as they think about pay packages going forward. Their decisions ultimately could impact the broader economy. Public companies often are large employers and hikes in employee pay designed to lower the gap between CEO and worker pay would give workers more discretionary income to spend, but also could raise the cost of goods sold. Privately owned companies are exempt from disclosure but might feel pressured to follow their public counterparts.

Margie Manning

Finance Editor

Tampa Bay Business Journal

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Duke Officials Defend CEO's Higher Pay At Annual Meeting

Duke Energy officials defended last year's big pay package for CEO Lynn Good during the company's online-only annual meeting Thursday afternoon.  Good got $21.4 million dollars in salary, bonuses, stock and other compensation - nearly double her pay two years before.

During a question-and-answer session, Duke investor relations chief Michael Callahan read this question from a shareholder:

“Why is compensation so over the top for executives, while customers are getting rate increases? Their pay and benefits are outrageous, while many struggle just to pay their bill.”

WFAE, By DAVID BORAKS • MAY 3, 2018 

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