For ceos, $11.7 million a year is just middle of the pack national news dailyprogress.com can you get trichomoniasis in the mouth

Because the government gave companies wide leeway in how they calculated the median pay of their workers, and because some industries rely heavily on part-time workers, the CEO-to-worker pay ratios are imperfect and make comparisons difficult. Despite pushback, Congress forced companies to publish the data as a way to shine a spotlight on income inequality.

High pay ratios send a dispiriting message to the workforce, said Liz Shuler, secretary-treasurer of the AFL-CIO, which has been calculating its own tally of CEO-to-worker pay ratios for years. Companies are asking their workers to do more with less, at the same that CEO pay is on the rise.

Detractors among business groups, academics and compensation consultants say the ratio can give a false impression. For example, some companies exclude some of their lower-paid foreign workers, which regulations allow.


And companies with large part-time workforces will show much greater disparity between the CEO’s pay and median pay.

So far, shareholders seem OK with the pay packages for CEOs. At both Yum Brands and United Rentals, more than 95 percent of shareholders approved their CEOs’ pay for last year. Likely buoying that support was the 31.1 percent return for Yum Brands stock and the 62.8 percent rise for United Rentals.

Across the SP 500, such votes on executive compensation passed with similar approval ratings in 2016 and 2017, at 95 percent, according to the data compiled by Equilar. The boards of directors who set CEO pay, meanwhile, say they are tying more of their executives’ compensation to how the company is performing, and they need to pay the going rate to keep talented executives.

The AP’s CEO compensation study includes pay data for 339 executives at SP 500 companies who have served at least two full consecutive fiscal years at their respective companies, which filed proxy statements between Jan. 1 and April 30. Some companies with highly paid CEOs did not fit these criteria, such as Oracle, and were excluded.

The highest-paid CEO in Equilar’s analysis was Hock Tan of Broadcom, who made $103.2 million. The vast majority of Tan’s compensation came in the form of a stock grant, valued at $98.3 million. He’ll receive the shares if the stock hits certain performance targets over the next four years. The company said in a filing with regulators that the figure looks substantial, but the amount Tan earns will only be exceptional if our (stock returns relative to other companies) is exceptional.

The second-highest paid CEO was Leslie Moonves of CBS. He made $68.4 million, including a $20 million bonus. CBS stock fell in 2017, but the company’s board highlighted how CBS is producing more premium content where it has an ownership stake, among other accomplishments.

No. 3 was W. Nicholas Howley at TransDigm, which designs and produces aircraft components. He earned $61 million, including $51.2 million of payments from the company on stock options he holds, as if they had earned dividends. Howley, a Transdigm co-founder, left his position as CEO last month. He is now executive chairman.

Jeffrey Bewkes of Time Warner was the fourth-highest paid CEO at $49 million. Time Warner rejiggered its compensation formulas for executives following its deal to be acquired by ATT, which was announced in 2016 but is still awaiting government approval. Bewkes received restricted stock valued at $32 million.

No. 5 was TripAdvisor’s Stephen Kaufer, at $43.2 million. He received grants of options and restricted stock valued at $42.1 million, and the company said it does not expect to give him another stock grant as long-term incentive compensation until 2021.

This is the first year that companies had to report the median pay for their employees. Median is the midpoint of the pay scale. Across the SP 500, the median compensation last year was $70,244, according to Equilar. That’s higher than the average pay for all U.S. workers, at $47,792, because the SP 500 is full of big, multinational companies. Last year’s median pay for the U.S. is not yet available.

Companies in the pharmaceutical, technology and energy sectors were on the high end of the SP 500 for worker pay. At Facebook, for example, the median compensation was $240,430. On the low end were retailers and fast-food restaurant chains, which tend to have more part-time workers.

Coming into this year, many companies had big concerns about the reaction to their CEO-to-worker pay ratios, particularly among their own employees. But after publishing the numbers, the backlash wasn’t that big, said Melissa Burek, a partner at Compensation Advisory Partners.

I have clients in the Midwest, where they’re the largest employer in town, and I would have thought those would get more attention, said Daniel Laddin, another partner at Compensation Advisory Partners. But no one seems to be getting too upset about it.

It may not make much sense to compare Yum Brands’ ratio with Facebook’s, but is each company’s ratio rising or falling through the years? In particular, will the figures get better or worse when the next economic downturn hits, whenever that may be?