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.”

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