A Sustainable Investment in Journalism

A sustainable business requires diverse revenue streams. ESG Investor now operates a subscription service as of Tuesday 14th May. To find out more please get in touch with our subscription team on subscriptions@esginvestor.net

Overpaid CEOs See Corporate Performance Suffer – As You Sow

US shareholder advocacy NGO As You Sow’s tenth annual 100 Most Overpaid CEOs list has shown that overpaying senior management leads to underperformance. According to the report, companies with the most overpaid CEOs had lower shareholder returns than the average S&P 500 company. It also found that the annual pay for CEOs has continued to grow, highlighting that the average pay of the 10 most overpaid had jumped from US$56 million in the first year of the report to an average of US$88 million this year, marking a 59% increase. Michael Rapino, CEO of Live Nation Entertainment, was found to be the most overpaid, earning US$139 million while the company’s median worker pay was short of US$26,000. He was followed by the CEOs of Oracle, and Alphabet in second and third respectively. Rosanna Landis Weaver, Executive Compensation Programme Manager at As You Sow, said: “The pay increase of the most overpaid CEOs is both infuriating and disheartening. It was also unnecessary for recruiting, retention, or competition. There are more than 250 companies — half of the S&P 500 companies — that didn’t appear on these overpaid CEO lists in any of the past ten years.”

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top