CEO salary

[niteowl]

Heard on the radio that the average CEO salary last year was $9.5 million a year

But I agree with the public people like the posties that were locked out getting paid over $20/ hr were greedy.

And where at one time it was calculated that some of the big name athletes in the Big 4 average any where from $13,000 per game to $68,000 per game and don't heard a peep and yet the public constantly dump on the unions trying to get 3-5% raise (not including other demands) eventhough inflation is at 3.5%.

 

[Dgodus]

That 9.5m seems quite high.

The big 4 sports have minimum salaries around .5m (nba and nfl determine min salaries based on years of service ie a nba rookie's minimum is like 285k whereas a 10year vet has like 1.2m or something)

I do know at one point ARod was making 50k an AB!!

 

[Ray]

The average salary of the top 100 CEO's on the TSX is about $9mil. But there's a lot more than 100 companies in Canada.

The average salary for a CEO in Canada is much lower.

http://www.payscale.com/research/CA/Job=Chief_Executive_Officer_(CEO)/Salary

 

[Sleepmonger]

Actually, the 9.5m is the median. Which means half of ceo's make less and the other half make more. We all know that those who do make more can make a whole lot more, and those who make less can only make 9.5 million less. So, I suspect the average to be a bit higher.


Thats talking american though, as ray said its way lower in Canada.

 

[Sleepmonger]

Oh, are you sure it's salary and not total earnings? From my understanding the average CEO's salary is much much lower than 9.5 million, but the ability to purchase large blocks of stock on a future date at current prices, and the receipt of a large bonus makes their total compensation around 10m

 

[joho]

If CEO made profit over 1 billion dollars for the company, he or she deserves that salary. If they are just cooking the book, they need to go to the prison for a long time!

 

[Big Dog Striker]

The opposite of Capitalism is Communism.

 

[DavidMR]

CEOs are able to influence Boards of Directors, by offering the Directors lucrative assignments. The result is that Boards end up paying these high flyers far more than they would if they were in fact doing what they should be doing, hiring executive personnel competitively.

 

[storm rider]

Meh....thats the way of things....the Nobs at the top and the Prole's at the bottom....and me in the middle making a nice fat stack of cash.

Do I care what the CEO of say Dow Chemical makes in a year...nope...I have no interest in that....do I care to know what the average wage slave that works at a Tim Hortons/Macdonalds/Wal-Mart makes...nope I dont....I care about me and what I make.And my mindset towards my co-workers is not to say/mention what I make as information such as that breeds discomfort/jealousy/contempt.

In the grand scheme of things there is allways someone that has it better than you.....and there are a lot of people down the ladder of life that look at your position with envy.

SR

 

[Tugela]

Heard on the radio that the average CEO salary last year was $9.5 million a year

But I agree with the public people like the posties that were locked out getting paid over $20/ hr were greedy.

And where at one time it was calculated that some of the big name athletes in the Big 4 average any where from $13,000 per game to $68,000 per game and don't heard a peep and yet the public constantly dump on the unions trying to get 3-5% raise (not including other demands) eventhough inflation is at 3.5%.

The average CEO at massive multinationals maybe. Most companies are way smaller than that though. I would guess the average CEO salary for companies in the $10-50 million expenditure range is more likely in the $250-400k range.

 

[HankQuinlan]

It is the average compensation of CEOs of all corporations listed on the US stock exchange. And their salaries have gone up again over the last year. And there is no correlation to performance, profits made, etc. It is just an old boys club...and they frequently sit on each others' boards of directors.

http://fullcomment.nationalpost.com...-report-shows-the-1-getting-more-1-than-ever/

 

[Cock Throppled]

CEO compensation has increased at a rate far more than any other level of paid employment.

The total package is far, far more than the salary, and usually the severance packages are out-of-this-world ridiculous.

The other huge problem, of course is the system is skewed to pay or even increase the bonuses and pay no matter the performance of the company. Used to be the profits dictated the pay for executives, but now, if the share price or profits tank the CEO still gets rewarded.
Even massive, consecutive yearly losses can see executive pay rates go up.

I not sure if the corporate world learned this from governments or it was the other way around.

 

[Tugela]

It is the average compensation of CEOs of all corporations listed on the US stock exchange. And their salaries have gone up again over the last year. And there is no correlation to performance, profits made, etc. It is just an old boys club...and they frequently sit on each others' boards of directors.

http://fullcomment.nationalpost.com...-report-shows-the-1-getting-more-1-than-ever/

That is not what they say, they refer to a typical company, not the typical company. If you read their source it is obvious that they are talking about companies on an index, not the market as a whole. Companies on those indexes are typically multi-billion dollar organizations. Basically the very top of the business world. It is not surprising that their most senior people get the superstar salaries, they are no different from superstar entertainers or superstar athletes in that respect. Most listed companies are not on those indexes, CEOs at those companies get paid a lot less. And most business units are not listed at all. The vast majority of CEOs don't get paid anywhere remotely close to those numbers.

News media like to run stories like this because it gets the little people all riled up, but the truth is that they are talking about the very elite few. Why are people so surprised that those elite few are rewarded similarly to the elite few in other fields?

Btw, the reason most companies have other elite businessmen/women on the boards is not because of backrubbing, it is because of the extensive business experience those sorts of people bring to the board. And most of those board members are there to represent the interests of major shareholders, and those shareholders are not the people who are having a problem with the remuneration package. That is why nothing will change in spite of all the squawking.

 

[DavidMR]

Btw, the reason most companies have other elite businessmen/women on the boards is not because of backrubbing, it is because of the extensive business experience those sorts of people bring to the board. And most of those board members are there to represent the interests of major shareholders, and those shareholders are not the people who are having a problem with the remuneration package. That is why nothing will change in spite of all the squawking.

That has certainly been the theory, but the practice in recent years has deviated a great deal. Travelling CEOs can move from company to company, arranging for massive compensation packages, because they are able to influence board members. The shareholders are in fact out of the loop and out of luck.

 

[Tugela]

Most of the shareholders in these companies are institutional investors, and trust me they don't give a shit about stuff like that, it is chicken feed compared to the big picture. They are more concerned about having a CEO there who is going to look after their interests. The small everyday investor, they will worry about remuneration because 10 million is a massive amount to them. But, the small investor is not the majority owner of these companies, institutional and large private investors are, so the CEOs listen to the latter. Those guys generally have a direct line to senior management. They make a phone call and the CEO will pick up. You make a phone call and a minion will put you on hold until another minion will pretend to pay attention to whatever your concern is.