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Apple CEO Tim Cook among the most overpaid CEOs, study finds

 1 year ago
source link: https://macdailynews.com/2023/02/17/apple-ceo-tim-cook-among-the-most-overpaid-ceos-study-finds/
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Apple CEO Tim Cook among the most overpaid CEOs, study finds

Friday, February 17, 2023 3:05 pmFriday, February 17, 202329 Comments

As You Sow this week released its 9th annual study — “The 100 Most Overpaid CEOs: Are Fund Managers Asleep at the Wheel?” — which focuses on how pension and financial fund managers hold companies accountable for excessive compensation. Apple CEO Tim Cook is listed among the most overpaid CEOs.

Apple CEO Tim Cook
Apple CEO Tim Cook

Total pay for S&P 500 chief executives continues to increase

The average pay of the “100 Most Overpaid CEOs” for this report was $38,192,249, up 30.6% from last year’s average of $29,233,020. The median pay — less influenced by the massive stock awards that inflate pay at the very top — was $23,455,188, representing an increase of 8% over the prior year.

The gap between CEO and median worker pay has also increased

According to the AFL-CIO, the chief executives of S&P 500 companies received 324 times that of their median-paid workers on average, up from 299 times in 2020 and 264 times in 2019. At Amazon, the CEO-to-worker pay ratio reached 6,474 to 1, with CEO Andrew Jassy making $212.7 million in total compensation while the median worker received $32,855.

Shareholder opposition to pay packages continues to grow

In the S&P 500, shareholder votes against CEO pay continued its five-year upward trajectory to a high of 12.6% opposition, gaining 4.2 percentage points in votes against since 2017. As detailed in this report, more funds are voting against more pay packages. If it weren’t for the continued weak response from a handful of the big players, the message that shareholders are fed up would be clearer.

Companies with overpaid CEOs continue to underperform

Companies with the 10 most overpaid CEOs (as named in our previous reports) once again saw shareholder returns much worse than the S&P 500 index.

Apple CEO Tim Cook among the most overpaid CEOs, study finds

MacDailyNews Take: In January, after shareholder pushback, Apple CEO Tim Cook took a 50% pay cut from $99.4 million in 2022 and $98.8 million in 2021 to about $49 million.

“Yes, executive compensation is out of whack. Tim Cook is vastly overpaid for what he does. This is because he holds a rare skillset and it benefits the shareholders to have continuity in the CEO position. Basically, Apple overpays Tim Cook in order to have a long-term CEO which provides confidence to the market. A succession of different CEOs jumping from company to company every other year seeking higher salaries would be a negative and justifies Cook’s overpayment. Cook is paid to stay more than for what he actually does. This is why he has vesting targets set years into the future. If he stays, providing continuity, he benefits and so does the company’s stock price.” — MacDailyNews, February 18, 2022

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