Business Services Industry
Investors Target High CEO Pay.
Kiplinger Business Forecasts, May, 2006
Byline: Matthew Mogul
Shareholder outrage about executive pay is sure to intensify in coming months when a new Securities and Exchange Commission (SEC) rule kicks in. The regulation will require public corporations to spell out in plain English exactly how much the company's top brass gets paid, including not only salary, but also bonuses, incentives, stock and stock-option grants plus the value of significant perks.
Last year, median CEO pay in the U.S. rose more than 11% to an average of $2.2 million a year. In contrast, average hourly wages in the U.S. climbed a mere 3.2%. Add stock options, incentive plans and other cushy perks to the mix, and U.S. chief executives earn about 430 times what their rank-and-file workers make. In the 1980s, top brass...
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