Google CEO Sandar Pichai earns 1,085 times and Microsoft CEO Satya Nadella 249 times more than the average employee, which some believe is unfair.
Undoubtedly, the CEOs of the companies listed on the S&P 500 have a very good income, but these salaries are sometimes so high that they seem to be higher than the average income of the company’s employees or even from the shareholders’ point of view. The As You Sow non-profit foundation recently compiled a list of 100 CEOs to look into the matter Published Compared to employees, they receive the highest salaries from their companies.
This study considers three main factors. The amount of additional salary that the CEO receives in relation to the company’s performance and payment in the past, the number of shareholders who voted against the CEO’s salary packages, and finally the comparison of the CEO’s salary with the average salary of the company’s employees.
According to the results of this study, the highest salary belongs to the CEO who has the highest amount of overpayment. Google and Alphabet CEO Sandar Pichai earns about $ 280 million. Despite the fact that the average salary of Alphabet workers is $ 258,000, it can be concluded that the CEO of this company receives 1085 times more than the average salary of employees. The report estimates Pichai’s surplus revenue at $ 266 million.
Microsoft, another tech giant, is ranked 24th on the list. Microsoft CEO Satya Nadella earns $ 42 million. According to the report, Nadella’s extra income is $ 27 million. Since the average salary of Microsoft employees is $ 172,000, it can be concluded that the ratio of CEO to employee salaries in Microsoft is 249 to one.
There is a lot of social media on Silicon Valley, but only Facebook is on the list. Facebook CEO Mark Zuckerberg is 73rd on the list. He has a salary of about $ 23 million, which, according to the report, earns him more than $ 9 million in surplus income. The average salary of a Facebook employee is $ 247,000. Therefore, the ratio of Zuckerberg’s salary to the company’s employees is 94 to one.
According to this report, the list of the highest paid managers and CEOs of technology companies is as follows:
- Reed Hastings – CEO of Netflix
- Monthly salary: $ 38 million
- Surplus: $ 23 million
- Average salary of employees: 202 thousand dollars
- رندال ال. Stephenson – CEO of IT&T
- Monthly salary: $ 32 million
- Surplus: $ 19 million
- Average salary of employees: $ 98,000
- Satya Nadella – CEO of Microsoft
- Monthly salary: $ 42 million
- Surplus: $ 27 million
- Average salary of employees: 172 thousand dollars
- Steven Mulnkoff – Qualcomm CEO
- Monthly salary: $ 23 million
- Surplus: $ 9 million
- Average salary of employees: 90 thousand dollars
- Robert Swan – Intel
- Monthly salary: $ 66 million
- Surplus: $ 53 million
- Average salary of employees: 96 thousand dollars
- Sandar Pichai – Alphabet
- Monthly salary: $ 280 million
- Surplus: $ 266 million
- Average salary of employees: 258 thousand dollars
According to the report, the performance of companies that are consistently on this list is much worse than other companies. The report has been published annually since 2015, and nine CEOs are on the list each year, earning more than $ 2 billion. However, these nine companies have lower annual returns for shareholders than companies that have never been seen on this list.
Ongoing and constant payment to the CEOs of these companies raises various concerns. Weak responsibility, weak governance and lack of concern for the interests of shareholders can be among these concerns. However, according to the report’s author, Rosana Landis Weaver, more shareholders are collecting votes against the CEOs’ heavy salaries, and that trend will soon change.