CEO Pay Soars In 2016 As Employee Wages Continue To Stagnate
by Tyler Durden
Mar 20, 2017
CEO pay increases took a brief pause in 2015 dropping to a paltry median of just $10.8 million with most getting a pay cut or a raise of less than 1.5%. But, as the Wall Street Journal points out this morning, the CEO’s of America can once again rest assured that their families will not starve to death as 2016 pay soared nearly 7% setting a post-recession record.
Median pay for the chief executives of 104 of the biggest American companies rose 6.8% for fiscal 2016 to $11.5 million, on track to set a postrecession record, according to a Wall Street Journal analysis.
Twice as many companies increased their chiefs’ pay as reduced it, though a few high-profile bosses took substantial pay cuts, including Apple Inc.’s Tim Cook and General Electric Co.’s Jeff Immelt.
The higher pay was doled out as the stock market notched strong gains and corporate profits rebounded over the course of 2016. “If ever there was going to be a good year for CEO pay, it was going to be 2016,” said David Yermack, a finance professor at New York University’s Stern School of Business who studies executive pay.
As usual, operating results had limited impact on CEO earnings potential and some of the largest payouts went to CEO’s who were fired in 2016.