bostonangler Posted February 9, 2020 Report Share Posted February 9, 2020 While it's not surprising that CEOs make a lot more money than their employees, the massive extent of that pay gap can sometimes be overlooked. US companies are required to publish their chief executives' annual compensation, as well as the ratio of that compensation to the annual pay of the company's median employee. Using those ratios, we calculated how long it took CEOs at 19 of the biggest companies in the US to make what at typical employee earned in a year. Several CEOs, including Disney CEO Bob Iger and Starbucks CEO Kevin Johnson, took less than a day to make a typical employee's annual salary. Visit Business Insider's homepage for more stories. CEOs make a lot more than the workers they oversee. We took a look at just how big that gap is at some of America's biggest corporations. One of the provisions of the post-financial-crisis Dodd-Frank reform bill requires corporations to disclose the ratio of their CEO's pay to that of the median employee at the company. Using those pay ratios, we calculated how long it would take the CEOs of big US companies to make what the median employee earned in a year. So far, 19 of the 100 largest corporations in the S&P 500 as measured by their market capitalizations have filed their CEO compensation figures and pay ratios for the 2019 fiscal year. More companies will follow over the next several months. The gap between what a CEO makes and what a typical employee makes varies widely from company to company. Nvidia CEO Jen-Hsun Huang had a total compensation 88 times larger than the typical employee at his company, meaning it took him a little over four days to earn the median employee's annual salary. Meanwhile, Walmart CEO Doug McMillon made 1,076 times what the typical Walmart worker made, and thus earned a median Walmart employee's annual salary in just eight hours. As with any discussion of executive compensation, it's worth noting that pay for people at the top is a bit more complicated than just getting a biweekly direct deposit. Many CEOs receive the bulk of their compensation in the form of equity in the companies they run, and so they may not realize the full value of their pay as reported to the SEC for years. Here's the full list, along with the CEOs' fiscal year 2019 compensation, median employee pay, and the CEO to median worker pay ratio: 19. Oracle co-CEO Safra Katz took 30 days and 10 hours to earn what a typical employee did in a year. Safra Catz Business Insider/Julie Bort CEO compensation: $965,981 Typical employee salary: $83,813 Ratio: 12:1 Oracle's other co-CEO Mark Hurd died in October 2019. 18. Nvidia CEO Jen-Hsun Huang took 4 days and 4 hours to earn what a typical employee made in a year. nvidia jen-hsun huang ceo AP Photo / Paul Sakuma CEO compensation: $13,642,838 Typical employee salary: $155,035 Ratio: 88:1 17. Intuit CEO Sasan Goodarzi took 3 days and 5 hours to earn what a typical employee made in a year. intuit ceo sasan goodarzi Courtesy of Intuit CEO compensation: $17,933,345 Typical employee salary: $157,232 Ratio: 114:1 Intuit noted in their proxy statement that Goodarzi's compensation reflects annualized pay. 16. Costco CEO W. Craig Jelinek took 2 days and 4 hours to earn what a typical employee made in a year. Costco CEO W. Craig Jelinek AP Photo/Nati Harnik CEO compensation: $8,016,200 Typical employee salary: $47,312 Ratio: 169:1 15. Visa CEO Alfred F. Kelly Jr. took 2 days and 4 hours to earn what a typical employee made in a year. Visa CEO Alfred F. Kelly Jr AP Photo/Mark Lennihan CEO compensation: $24,265,771 Typical employee salary: $142,494 Ratio: 170:1 14. Cisco Systems CEO Chuck Robbins took 2 days to earn what a typical employee made in a year. Cisco CEO Chuck Robbins AP Images CEO compensation: $25,829,833 Typical employee salary: $142,593 Ratio: 181:1 13. Salesforce co-CEO Marc Benioff took 1 day and 23 hours to earn what a typical employee made in a year. marc benioff REUTERS/Noah Berger CEO compensation: $28,391,846 Typical employee salary: $151,955 Ratio: 187:1 Salesforce's other co-CEO Keith Block made $16,961,156 in 2019, meaning it took him 3 days, 6 hours to make what a typical employee did in a year. 12. Apple CEO Tim Cook took 1 day and 20 hours to earn what a typical employee made in a year. Tim cook Getty CEO compensation: $11,555,466 Typical employee salary: $57,596 Ratio: 201:1 11. Medtronic CEO Omar Ishrak took 1 day and 13 hours to earn what a typical employee made in a year. Medtronic CEO Omar Ishrak Reuters/Steve Marcus CEO compensation: $17,796,325 Typical employee salary: $74,206 Ratio: 240:1 10. Microsoft CEO Satya Nadella took 1 day and 11 hours to earn what a typical employee made in a year. Satya Nadella Microsoft AP Photo/Mark Lennihan AP Photo/Mark Lennihan CEO compensation: $42,910,215 Typical employee salary: $172,512 Ratio: 249:1 9. Qualcomm CEO Steve Mollenkopf took 1 day and 10 hours to earn what a typical employee made in a year. Qualcomm CEO Steve Mollenkopf Reuters/Rick Wilking CEO compensation: $23,065,052 Typical employee salary: $90,259 Ratio: 256:1 8. ADP CEO Carlos Rodriguez took 1 day and 5 hours to earn what a typical employee made in a year. ADP's Carlos Rodriguez CNBC Video CEO compensation: $19,000,187 Typical employee salary: $63,225 Ratio: 301:1 7. Former Nike CEO Mark G. Parker took 15 hours and 56 minutes to earn what a typical employee made in a year. Mark Parker AP/Rick Bowmer CEO compensation: $13,968,022 Typical employee salary: $25,386 Ratio: 550:1 Note: Parker stepped down as Nike CEO in January 2020 and was succeeded by John Donahoe. 6. Estée Lauder CEO Fabrizio Freda took 12 hours and 34 minutes to earn what a typical employee made in a year. Fabrizio Freda Patrick McMullan/Getty Images CEO compensation: $21,435,428 Typical employee salary: $30,733 Ratio: 697:1 5. Former Accenture Interim CEO David P. Rowland took 10 hours and 43 minutes to earn what a typical employee made in a year. FILE PHOTO: Visitors look at devices at Accenture stand at the Mobile World Congress in Barcelona, February 26, 2013. REUTERS/Albert Gea Reuters CEO compensation: $15,031,875 Typical employee salary: $18,392 Ratio: 817:1 Note: Rowland stepped down as CEO in September 2019 and was succeeded by Julie Sweet. Accenture also provided an alternate estimate of the CEO pay ratio based on a cost-of-living adjustment, as their median employee was based in India. Using that estimate, the ratio was 298:1, and Rowland would have made what the median employee did in 1 day, 5 hours. 4. Disney CEO Bob Iger took 9 hours and 37 minutes to earn what a typical employee made in a year. Bob Iger Photo by Kimberly White/Getty Images for Vanity Fair CEO compensation: $47,517,762 Typical employee salary: $52,184 Ratio: 911:1 3. Walmart CEO Doug McMillon took 8 hours and 8 minutes to earn what a typical employee made in a year. Doug McMillon Reuters/Ray Stubblebine CEO compensation: $23,618,233 Typical employee salary: $21,952 Ratio: 1,076:1 2. TJX CEO Ernie Herrman took 5 hours and 29 minutes to earn what a typical employee made in a year. Ernie Herrman Stephen Lovekin/Getty Images CEO compensation: $18,822,770 Typical employee salary: $11,791 Ratio: 1,596:1 1. Starbucks CEO Kevin Johnson took 5 hours and 14 minutes to earn what a typical employee made in a year. Kevin Johnson Joshua Trujillo, Starbucks CEO compensation: $19,241,950 Typical employee salary: $11,489 Ratio: 1,675:1 Read the original article on Business Insider How much money does one person need? Geez B/A 1 1 Quote Link to comment Share on other sites More sharing options...
umbertino Posted February 9, 2020 Report Share Posted February 9, 2020 Interesting and thanks, B/A.... Just ran out of pluses this second....... 1 1 Quote Link to comment Share on other sites More sharing options...
bostonangler Posted February 10, 2020 Author Report Share Posted February 10, 2020 I never liked Starbucks coffee, I find it to be very bitter... But seeing their average employee makes less per hour than the price of 3 coffees, I like it even less... B/A 1 Quote Link to comment Share on other sites More sharing options...
md11fr8dawg Posted February 10, 2020 Report Share Posted February 10, 2020 I am with you BA, never have like Starplucks, too bitter, too overhyped and way to pricey. 1 1 Quote Link to comment Share on other sites More sharing options...
DinarDavo Posted February 10, 2020 Report Share Posted February 10, 2020 34 minutes ago, md11fr8dawg said: I am with you BA, never have like Starplucks, too bitter, too overhyped and way to pricey. That's why they just changed the name to 4-Bucks..... 2 Quote Link to comment Share on other sites More sharing options...
umbertino Posted February 10, 2020 Report Share Posted February 10, 2020 5 hours ago, bostonangler said: I never liked Starbucks coffee, I find it to be very bitter... But seeing their average employee makes less per hour than the price of 3 coffees, I like it even less... B/A Modern slavery once again....Current trend ( for years now) in the whole "civilized" world...Same w Amazon etc 1 Quote Link to comment Share on other sites More sharing options...
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