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Here’s How Much the Top CEOs of S&P 500 Companies Get Paid

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Here's How Much Top CEOs of S&P 500 Companies Get Paid

How Much the Top CEOs of S&P 500 Companies Get Paid

How much do the CEOs from some of the world’s most important companies get paid, and do these top CEOs deliver commensurate returns to shareholders?

Today’s infographic comes to us from HowMuch.net and it visualizes data on S&P 500 companies to see if there is any relationship between CEO pay and stock performance.

For Richer or Poorer

To begin, let’s look at the highest and lowest paid CEOs on the S&P 500, and their associated performance levels. Data here comes from a report by the Wall Street Journal.

Below are the five CEOs with the most pay in 2018:

RankCEOCompanyPay (2018)Shareholder Return
#1David ZaslavDiscovery, Inc.$129.4 million10.5%
#2Stephen AngelLinde$66.1 million3.1%
#3Bob IgerDisney$65.6 million20.4%
#4Richard HandlerJefferies$44.7 million-14.9%
#5Stephen MacMillanHologic$42.0 million11.7%

Last year, David Zaslav led top CEOs by taking home $129.4 million from Discovery, Inc., the parent company of various TV properties such as the Discovery Channel, Animal Planet, HGTV, Food Network, and other non-fiction focused programming. He delivered a 10.4% shareholder return, when the S&P 500 itself finished in negative territory in 2018.

Of the mix of highest-paid CEOs, Bob Iger of Disney may be able to claim the biggest impact. He helped close a $71.3 billion acquisition of 21st Century Fox, while also leading Disney’s efforts to launch a streaming service to compete with Netflix. The market rewarded Disney with a 20.4% shareholder return, while Iger received a paycheck of $65.6 million.

Now, let’s look at the lowest paid CEOs in 2018:

RankCEOCompanyPay (2018)Shareholder Return
#1Larry PageAlphabet$1-0.8%
#2Jack DorseyTwitter$119.7%
#3A. Jayson AdairCopart$203,00082.2%
#4Warren BuffettBerkshire Hathaway$398,0003.0%
#5Valentin GapontsevIPG Photonics$1.7 million-47.1%

On the list of lowest paid CEOs, we see two tech titans (Larry Page and Jack Dorsey) that have each opted for $1 salaries. Of course, they are both billionaires that own large amounts of shares in their respective companies, so they are not particularly worried about annual paychecks.

Also appearing here is Warren Buffett, who is technically paid $100,000 per year by Berkshire Hathaway plus an amount of “other compensation” that fluctuates annually. While this is indeed a modest salary, the Warren Buffett Empire is anything but modest in size – and the legendary value investor currently holds a net worth of $84.3 billion.

Finally, it’s worth noting that while J. Jayson Adair of Copart was one of the lowest paid CEOs at $203,000 in 2018, the company had the best return on the S&P 500 at 82.2%. Today, the company’s stock price still sits near all-time highs.

Maxing Returns

Finally, let’s take a peek at the CEOs that received the highest shareholder returns, and if they seem to correlate with compensation at all.

RankCEOCompanyPay (2018)Shareholder Return
#1A. Jayson AdairCopart$203,00082.2%
#2Lisa SuAMD$13.4 million79.6%
#3François Locoh-DonouF5 Networks$6.9 million65.4%
#4Sanjay MehrotraMicron Technology$14.2 million64.3%
#5Ken XieFortinet$6.8 million61.2%

Interestingly, three of highest performing CEOs – in terms of shareholder returns – actually took home smaller amounts than the median S&P 500 annual paycheck of $12.4 million. This includes the aforementioned A. Jayson Adair, who raked in only $203,000 in 2018.

That said, there is a good counterpoint to this as well.

Of the five CEOs who had the worst returns, four of them made less than the median value of $12.4 million, while one remaining CEO took home slightly more. In other words, both the best and worst performing CEOs skew towards lower-than-average pay to some degree.

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The 20 Biggest Bankruptcies in U.S. History

There is always risk in business – but for these 20 companies, which caused the biggest bankruptcies in history, those risks didn’t quite pan out.

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Doing business means taking calculated risks.

Regardless of whether you are opening a lemonade stand or you’re a leading executive at a Fortune 500 company, risk is an inevitable part of the game.

Taking bigger risks can generate proportional rewards – and sometimes, such as for the companies you’ll read about below, the risk-taking backfired to queue up some of the biggest bankruptcies in U.S. history.

Going For Broke

Today’s infographic comes to us from TitleMax, and it highlights the 20 biggest bankruptcies in the country’s history.

Companies below are sorted by total assets at the time of bankruptcy.

The 20 Biggest Bankruptcies in U.S. History

There are times when companies are forced to push in all of their chips to make a game-changing bet. Sometimes this pans out, and sometimes the plan fails miserably.

In other situations, companies were actually unaware they were “all-in”. Instead, the potentially destructive nature of the risk was not even on the radar, only to be later triggered through a global crisis or unanticipated “Black Swan” events.

The Biggest Bankruptcies in the U.S.

Here are the 20 biggest bankruptcies in U.S. history, and what triggered them:

RankCompanyYearAssets at BankruptcyDownfall
#1Lehman Brothers2008$691 billion2008 financial crisis
#2Washington Mutual2008$328 billion2008 financial crisis
#3Worldcom Inc.2002$104 billionAccounting scandal
#4GM2009$82 billionMassive debt
#5CIT Group2009$71 billionCredit crunch
#6Pacific Gas & Electric2019$71 billionWildfires
#7Enron2001$66 billionFraud
#8Conseco2002$61 billionFailed acquisition strategy
#9MF Global2011$41 billionEuropean sovereign bonds
#10Chrysler2009$39 billionMassive debt
#11Thornburg Mortgage2009$37 billionDeclining mortgage values
#12Pacific Gas & Electric2001$36 billionDrought
#13Texaco1987$35 billionContract dispute
#14FCOA1988$34 billionSavings and loan crisis
#15Refco2005$33 billionAccounting fraud
#16IndyMac Bancorp2008$33 billionMortgage market collapse
#17Global Crossing2002$30 billionPlummeting world economy
#18Bank of New England1991$30 billionBad loans
#19General Growth Properties2009$30 billionFailed acquisition strategy
#20Lyondell Chemical2009$27 billionDecline in demand

The data set on the biggest bankruptcies is organized by assets at time of bankruptcy. Therefore, they are not in inflation-adjusted terms, meaning the list skews towards more recent events.

This makes the impact of the 2008 financial crisis particularly easy to spot.

The events and consequences relating to the crisis (loan defaults, illiquidity, and declining asset values) were enough to take down banks like Lehman Brothers and WaMu. The after effects – including a slumping global economy – led to a second wave of bankruptcies for companies such as GM and Chrysler.

In total, nine of the 20 biggest bankruptcies on the list occurred in the 2008-2009 span.

A Dubious Distinction

You may also notice that one company was on the list twice, and this was not an accident.

Pacific Gas & Electric, a California company that is the nation’s largest utility provider, has the dubious distinction of going bankrupt twice in the last 20 years. The first time, in 2001, resulted from a drought that limited hydro electricity generation, forcing the company to import electricity from outside sources at exorbitant prices.

The more recent instance happened earlier this year. Facing tens of billions of dollars in liabilities from raging wildfires in California, the utility filed for Chapter 11 protection yet another time.

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11 Things Leaders Should Never Say to Teams

Here are 11 common phrases that managers should avoid saying to their teams, and what they should replace them with to get a better result.

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Being a leader comes with great responsibility.

Not only are you accountable for the success of your division or organization, but your team is also constantly reliant on you for feedback, coaching, and guiding personal development.

While juggling these priorities, it’s not always easy for a manager to know the exact right thing to say to employees on the team. To further complicate matters, we all have bad management habits that have compounded over time, and they can be difficult to shed.

Building a New Lexicon

Today’s infographic comes to us from Headway Capital, and it highlights 11 things that leaders should never say to their teams.

More importantly, it breaks down the negative implications of each instance, while also providing suggestions on how we can evolve our managerial skills to ensure that we are approaching each situation far more proactively.

11 Things Managers Should Never Say to Their Team

Life as a leader is busy, and it has many competing priorities.

However, to grow the type of company culture that pays long-term dividends, it’s worth it to try and better develop the way you give feedback to team members.

Typical Mistakes

Using the list of items in the infographic, we can generally categorize these mistakes in a few distinct categories.

1. Gut Reactions

The quick dismissal of someone’s effort (“That’s not important”) or the temptation to play the busy card (“I don’t have time to talk right now”) can send the message that an employee’s time or thoughts are not valued.

Instead, small adjustments can be made to encourage better outcomes. For example, you could make it clear that while you may be busy in the moment, that a time can be scheduled at a later date to discuss the issue in detail.

2. Business Truisms

Likewise, spouting overused, quasi-motivational business phrases (“Failure is not an option”) or using dictative language (“We’ve already tried that before”) can stifle innovation at a company.

It’s better to instead ask questions, such as “What is our backup plan if this idea doesn’t work?” or “What other options do you see?”, to expand the range of opportunities that can be pursued.

3. Generic Feedback

Finally, although phrases like “Keep doing what you’re doing” or “Nice job today” seem to be positive and engaging, they actually are ineffective from a development perspective.

Employees need specific feedback to grow, so all that has to happen here is to mention a specific task or project along with the feedback. Team members can then internalize precisely what made a project or task a success, and apply it to other areas in the workplace.

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