Payment packages for U.S. CEOs hit record for sixth consecutive year

The pay packages of top executives of the largest U.S. corporations set another record in 2021, reaching a median value of $ 14.7 million. This is the tenth consecutive year that median compensation has increased and the sixth consecutive year of record setting packages for chief executive officers (CEOs) of leading U.S. companies.

CEO Tim Cook at the Apple retail store in downtown Los Angeles Thursday, June 24, 2021. (AP Photo/Damian Dovarganes)

According to a Wall Street Journal analysis published Monday, the total compensation of CEOs of more than 400 companies in the S&P 500 will rise 12 percent in 2021. The Diary The study also said that “most companies recorded an annual shareholder return of nearly 30 percent.”

With a median total package value of $ 14.7 million, the analysis reported that $ 10.6 million consisted of equity awards, that is, non-cash payments in the form of various company stock options. The balance of $ 4.1 million in the CEO’s median package is in the form of salaries, bonuses and other cash compensation.

By 2020, the median CEO package will be worth $ 13.4 million, and the cash share will be $ 3.1 million. In other words, while workers in nearly every U.S. industry saw a reduction in real wages in 2021 due to an inflation rate of 7 percent, the cash portion of the median CEO’s compensation rose 32.3 percent.

Like everything related to the accumulation of so much wealth in the high levels of American capitalist society, massive equity and cash compensation packages are awarded to a handful at the top end of the Diary rankings, and this exclusive club is growing. The analysis says, “Nine CEOs received pay packages worth at least $ 50 million last year — up from seven in 2020 and one in 2016.”


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