[By Guancha Observer Network, Deng Jun; Edited by Zhao Qiankun]

According to the annual survey of CEO compensation for the S&P 500 index conducted by The Wall Street Journal and the Associated Press, the highest-paid CEOs in the travel and related industries in 2024 are Glenn Fogel of Booking Holdings, Bob Iger of Disney, and Dara Khosrowshahi of Uber.

The analysis by The Wall Street Journal used data from the public company data platform MyLogIQ (including over 400 companies in the S&P 500 index), showing that overall, CEO compensation has set another record.

Usually, these CEOs' compensation is linked to the company's financial performance, measured by changes in stock prices and dividend payments. At the same time, the increase in CEO compensation is largely driven by stock awards granted to them.

An analysis by Equilar found that on average, 70% of the compensation for CEOs of S&P 500 companies comes from stock awards, with the average compensation in 2023 reaching an astonishing $9.4 million (approximately 67.58 million RMB).

According to a report by the Associated Press, pushed by significant growth in the stock market and corporate profits, the total compensation packages (including base salary, overtime pay, bonuses, stocks or options, benefits, and other subsidies) for CEOs of S&P 500 companies increased by nearly 10% in 2024.

Data from MyLogIQ shows that half of the CEOs of S&P 500 companies earned $17.1 million (approximately 123 million RMB) or more in 2024, up from $15.8 million (approximately 114 million RMB) in 2023. The average annual salary for ordinary employees at the surveyed companies was approximately $85,000 (about 610,000 RMB), an increase of 1.7% compared to 2023.

The Wall Street Journal reported that Rick Smith of Axon topped the list of CEO compensation with a package worth up to $164.5 million (approximately 1.183 billion RMB). Larry Culp of General Electric, Stephen Schwarzman of Blackstone Group, and Tim Cook of Apple ranked second, third, and fourth on the list with compensation packages of $89 million (approximately 640 million RMB), $84 million (approximately 604 million RMB), and $75 million (approximately 539 million RMB), respectively.

The report also mentioned that a large portion of Rick Smith's compensation consists of stock awards, which he can only receive if his company meets performance targets related to stock price and operations between 2024 and 2030.

Among travel and related companies, Glenn Fogel ranked 16th with $44.8 million (approximately 322 million RMB), Bob Iger ranked 19th with $41.1 million (approximately 317 million RMB), and Dara Khosrowshahi ranked 21st with $39.4 million (approximately 283 million RMB). Glenn Fogel's compensation fell by 4.03% year-over-year, while Bob Iger's and Dara Khosrowshahi's compensation increased by 30% and 63%, respectively.

Melissa Burek, a partner at Morningstar Sustainalytics, noted that given the significant role of long-term incentives in executive compensation, it is reasonable that the annual growth rate of long-term incentive targets always exceeds that of salaries or bonuses.

However, Jackie Cook of Morningstar Sustainalytics also noticed that the widespread use of stock-based compensation has led to "astonishing growth" in CEO compensation, which "widens the wage gap within the workplace."

For example, according to Tesla's proxy statement, its CEO Elon Musk did not receive any compensation in 2024. However, in 2018, Elon Musk received a multi-year compensation package worth up to $5.6 billion (approximately 40.262 billion RMB). The CEO of Carnival Corporation earns nearly 1,300 times the median salary of all employees, while the CEO of McDonald's earns approximately 1,000 times the median salary.

According to data from the U.S. Department of Labor, as of 2024, the net increase in wages and benefits for private sector employees in the United States was 3.6%. The average annual income for American workers is about $65,000 (approximately 467,300 RMB). When including benefits such as healthcare and insurance, this figure rises to $92,000 (approximately 661,400 RMB).

An analysis by the Associated Press stated that as these CEOs' compensation continues to rise, the wage gap within companies is also widening.

This article is an exclusive contribution from the Guancha Observer Network and cannot be reproduced without permission.

Original source: https://www.toutiao.com/article/7513882511504704050/

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