New York (AP) – The model compensation package for the President of Executive Managers who run companies at the S&P 500 has jumped about 10 % in 2024 likeThe stock market has another bannerCorporate profits rose sharply.
Many companies have responded calls from shareholders to link the CEO compensation more closely. As a result, a large percentage of payment packages consists of stock prizes, which the CEO often cannot spend for years, if any, unless the company meets certain goals, the share price or market value is usually higher or improved operating profits.
ASSOCIATED PRESS compensation, which uses dataIt was analyzed for AP by equilarThe payment data for 344 of the CEO of S&P 500, which served at least two years in a row, included at least in their companies, which provided the agent data between January 1 and April 30.
Below are the main meals of the poll:
Good year at the top
The medium payment package for executives increased to $ 17.1 million, an increase of 9.7 %. Meanwhile, the average company in the companies in the survey received $ 85,419, which reflects an increase of 1.7 % on an annual basis.
CEOs had to move in sticky inflation and relatively high interest rates last year, as well asConsumer confidence decreased. But the economy also provided some winds of the tail: consumers continued to spend despite their concerns about the economy; The inflation has somewhat calmed. Federal Reserve BankLow interest rates; andThe labor market remains strong.
The main standard for the stock market, S&P 500, increased by more than 23 % last year. Corporate profits in the index increased by more than 9 %.
“It was expected in 2024 a strong year, so 10 % increases commensurate with the timing of payment decisions,” said Dan Ladine, a partner in the compensation consultant partners.
Sarah Anderson, who runs the global economy project at the Progressive Institute for Policy Studies, said that there are some recent increases in “wage” in workers’ salaries, especially for those in the bottom of the wage scale. But she said that many workers in the world’s richest countries are still struggling to pay their bills.
Cossteers
Rick Smith, founder and CEO of Axon Enterprises, topped the questionnaire with a payment package of $ 164.5 million. Axon, which is made by Taser Stun Puns and Cameras, has witnessed that revenues grow more than 30 % for three consecutive years, and recorded a net net net of $ 377 million in 2024. AXON shares more than last year after increasing more than 50 % in 2023.
Almost all Smith payment package consists of stock awards, which it can only receive if the company meets goals related to the stock price and operations for the period from 2024 to 2030. Companies have to set value for stock prizes when granted.
One of the top owners of other papers in the reconnaissance Lawrence Collip, CEO of the companyWhat is now Ge AerospacE ($ 87.4 million),Tim Cook in Apple(74.6 million dollars), David Getlin and Global carrier (65.6 million dollars) andTed Sarandos in Netflix(61.9 million dollars). The largest part of the payment packages consists of stock prizes or options.
The medium stock award increased by about 15 % last year compared to an increase of 4 % in basic salaries, according to Equilar.
“For executives, long -term incentives are constantly increasing every year of salaries or rewards,” said Melissa Borik, a partner in the compensation consultant partners. “Given the important role that long -term incentives play in executive wages, this trend is logical.”
“The shares -based wage seems to provide a clear market signal that most shareholders are interested in,” said Jackie Cook at Mooringstar Sdevalytics. But she notes that the greatest use of stock -based wages led to a “huge rise” in the compensation of the CEO “tracking the performance of the market in recent years”, which “expanded the wage gap inside the workplace.”
Some well -known billionaire executives are low in AP scanning. The value of Warren Buffett compensation was $ 405,000, about five times what is the factor in Berkshire Hathaway Makes. According to Tesla Agency, Elon Musk did not receive any compensation for 2024, but in 2018 he received a multi -year package of $ 56 billion, which isThe topic of the court battle.
Other prominent executives did not fulfill the criteria for listing in the questionnaire. Brian Nicole from Starbucks received a $ 95.8 million salary package, but he only took the position of CEO on September 9. Jensen Huang witnessed Nafidia that his compensation grows to $ 49.9 million, but the company submitted its agent after April 30.
The payment gap
In half of the companies in the annual wage defense survey in AP, it will take the middle of the company’s 192 -year salary scale to make what the CEO did in one. Companies have been asked to detect alleged wages since 2018.
The wage ratio tends to be higher in companies in industries where wages are usually low. For example, at Cruise Line Carnival Corp. Her CEO of approximately 1,300 times the wage of $ 16,900 for her workers. The CEO of McDonald’s Company is about 1000 times what the company is doing the company’s average salaries. The two companies have operations that extend to many countries.
In general, the wages and benefits recorded by private sector workers in the United States increased by 3.6 % to 2024, according to the Ministry of Labor. The average worker in the United States achieves $ 6,5460 a year. This number rises to $ 92,000 when advantages such as health care and insurance are included.
Anderson said: “As the salaries of the CEO continue, we still have a tremendous problem with excessive wages,” Anderson said. “These huge differences are not only unfair to workers with the lowest level who make great contributions to the company’s value-as it undermines the effectiveness of institutions by reducing employee morale and enhancing rotation rates.”
Some gains for executives
For the 27 women who scanned AP – the highest number dating back to 2014 – the average wages increased by 10.7 % to 20 million dollars. This compares 9.7 % to $ 16.8 million for their male counterparts.
The highest issued among the executive chiefs was Judith Marx Otis all over the worldWith a payment package of $ 42.1 million. The company, known for its elevators and animated stairs, made operating profits of more than two billion dollars for four consecutive years. About 35 million dollars was a brand compensation in the form of stock awards.
He was one of the senior potential chiefs of executive Jin Fraser Citigroup (31.1 million dollars), Lisa Soo from Advanced small devices ($ 31 million), Mary Barra at General Motors (29.5 million dollars) and Laura Alber in Williams-Sonoma (27.7 million dollars).
“There are a few women in the list of paid executive director, the total shares trends are stagnant, especially as companies have reduced Dei programs.”
“There may be some names on the list, but in fact we do not transfer the needle significantly,” she said.
Give priority to security
Equilar found that a larger number of companies providing Perperies as part of executive compensation packages, and perhaps a response to the filming of UNITEDHEALTHCARE, Brian Thompson in December.
Equilar said that the analysis of 208 companies in the S&P 500 provided the agent’s data by April 2 showed that the average security spending rose to 94,276 dollars last year from 69,180 dollars in 2023.
Among the companies that have increased their security benefits Two yearsWhich provides health care services for medical care and the doctor, and the chips maker Intel.
This story was originally shown on Fortune.com
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