Major companies in the United States have paid an average of $ 14.5 million in compensation to their CEOs over the past year. This is an increase of 17.1 percent over the previous year. This is according to a report by Advisor Equilar and the Associated Press, based on an analysis of the rewards that S&P 500 companies offer to their executives.
However, many observers warn that luxurious management rewards are proving to be a thorn in the side of many employees. However, this can cause problems for companies.
“This increase is largely due to the higher profits companies made last year and the higher quotes in the stock market,” he said. In the statement I noticed. “Management compensation is significantly higher than the salaries of employees in the same companies, where an average increase of 4.4 percent has been recorded.”
“The wages of those workers also failed to keep up with inflation, which reached 7 percent at the end of last year, and thus many workers lost real purchasing power.
“However, the management of large companies was able to benefit from a stronger economic recovery than the previous year,” the Associated Press said. “Since a large portion of executive pay is tied to such performance, a sharp increase in compensation may be noted after several years of moderate growth.”
Equilar estimates that last year’s compensation packages for executives of large companies averaged only a quarter. In very large companies, this share often falls below 1 percent.
Attendance of staff
“We need to determine in what form compensation is being offered and whether the pay gap between management and employees is widening,” the researchers argue. “In half the companies, the employees In the middle of the wage rate It now takes 186 years for the CEO to generate the revenue he collects in a year.
“That time frame was even different than the previous year Has grown over more than two decadesThis imbalance leads to increasing anger. Studies show that Americans of all political parties believe that corporate executives are paid more. Many investors respond.
“This gap sends a negative message to employees,” warns Sarah Anderson, an analyst at the Institute for Policy Studies. “Differences do not mean that employees are really respected. This is really depressing news, but it can cost companies more.
“The growing dissatisfaction has prompted many employees to leave the company and look for opportunities elsewhere. Income of such high employees Companies can get into big trouble.
“Passionate analyst. Thinker. Devoted twitter evangelist. Wannabe music specialist.”