The Top 20 Tech Companies by Revenue Per Employee
Whether the goal is to organize the world’s information or to build an algorithm that makes millions of lives easier, pretty much every tech company in existence aims to leverage software in some way to do the types of jobs that would otherwise be impossible or uneconomical for humans to do.
Tapping into the properties of the digital world allows these companies to do more with less. They can have global reach with minimal infrastructure, massive scale with little overhead, and impressive revenues without any physical inventory.
Tech companies can even “provide” a service by simply connecting people through a platform, rather than knowing how to perform the service itself.
“Our Greatest Asset”
With this kind of scale, every action taken by an employee packs an extra punch to have an effect on company performance. It’s why companies like Google, Facebook, and Microsoft are willing to pay an arm and a leg for the smartest engineers. These teams are not physically turning out widgets in a factory under the constraints of normal economic factors – instead, they are applying their brains to a codebase, and even the tiniest cost savings can add up when multiplied by millions of users.
Today’s visualization from cost information site HowMuch.net helps put this all in perspective by showing revenue per employee of some of the world’s largest tech companies that are a part of the S&P 500.
Here’s the data in table form:
|Rank||Company||Revenue per employee|
List only based on S&P 500 companies listed in “Technology” category
Facebook, Alphabet, and Visa each bring in over $1 million in revenue per employee – and Apple rakes in nearly $2 million per person.
While these numbers are impressive, not all tech companies on the S&P 500 are masters of scale. In fact, the average tech company brings in closer to $480,000 of revenue per employee.
This amount is comparable to other sectors that make up the S&P 500, like Materials ($600,000 per employee) or Consumer Discretionary ($420,000 per employee).
Here’s How Much the Top CEOs of S&P 500 Companies Get Paid
Does high pay for CEOs translate into company performance? See for yourself in this visualization featuring the top CEOs of companies on the S&P 500.
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:
|Rank||CEO||Company||Pay (2018)||Shareholder Return|
|#1||David Zaslav||Discovery, Inc.||$129.4 million||10.5%|
|#2||Stephen Angel||Linde||$66.1 million||3.1%|
|#3||Bob Iger||Disney||$65.6 million||20.4%|
|#4||Richard Handler||Jefferies||$44.7 million||-14.9%|
|#5||Stephen MacMillan||Hologic||$42.0 million||11.7%|
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:
|Rank||CEO||Company||Pay (2018)||Shareholder Return|
|#3||A. Jayson Adair||Copart||$203,000||82.2%|
|#4||Warren Buffett||Berkshire Hathaway||$398,000||3.0%|
|#5||Valentin Gapontsev||IPG 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.
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.
|Rank||CEO||Company||Pay (2018)||Shareholder Return|
|#1||A. Jayson Adair||Copart||$203,000||82.2%|
|#2||Lisa Su||AMD||$13.4 million||79.6%|
|#3||François Locoh-Donou||F5 Networks||$6.9 million||65.4%|
|#4||Sanjay Mehrotra||Micron Technology||$14.2 million||64.3%|
|#5||Ken Xie||Fortinet||$6.8 million||61.2%|
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.
Which Countries Own the Most U.S. Debt?
More than $6 trillion of U.S. debt is owned by foreign governments such as China or Japan. See how it all breaks down, and what it means.
The Foreign Countries Holding the Most U.S. Debt
In the international finance system, U.S. debt can be bought and held by virtually anyone.
In fact, if you hold a U.S. Treasury bond or a T-Bill in your portfolio right now, you are already a creditor to the United States government.
And as you can see in today’s chart from HowMuch.net, foreign countries like China and Japan can also accumulate large positions in U.S. Treasurys, making them significant players in the overall United States debt pie.
U.S. Debt: The Big Picture
The United States federal debt currently sits at $22 trillion, and it’s held by a range of domestic and foreign investors.
|Entity||Debt Holdings||Share of Total|
|U.S. Government and Federal Reserve||$8.1 trillion||36.8%|
|Foreign and international||$6.3 trillion||28.5%|
|Mutual funds||$2.06 trillion||9.4%|
|Pension funds||$0.92 trillion||4.2%|
|State and local governments||$0.69 trillion||3.1%|
|Other investors||$3.18 trillion||14.5%|
As you can see, about $8.1 trillion of debt is held by departments of the U.S. government or the Federal Reserve. This number would include securities sitting in retirement accounts of federal employees, social security trust funds, or any of the Treasurys sitting on the Fed’s balance sheet.
Next, another $7.6 trillion of debt is held by domestic investors. These are marketable securities held by banks, mutual funds, pension funds, insurance companies, and other investors.
While debt held domestically is mostly uninteresting, a bigger question mark is the $6.3 trillion of debt that is owned by foreign countries. After all, couldn’t a country like China “weaponize” its large holdings of Treasury securities as a form of retaliation in the ongoing trade war?
Foreign Owners of the Debt
Internationally, the biggest owners of debt include China and Japan, each with over $1 trillion.
|Rank||Country||U.S. Debt Holdings||Percentage of Foreign U.S. Debt Held (%)|
|#1||🇨🇳 China||$1.11 trillion||17.3%|
|#2||🇯🇵 Japan||$1.06 trillion||16.5%|
|#3||🇧🇷 Brazil||$307 billion||4.8%|
|#4||🇬🇧 United Kingdom||$301 billion||4.7%|
|#5||🇮🇪 Ireland||$270 billion||4.2%|
|#6||🇨🇭 Switzerland||$227 billion||3.5%|
|#7||🇱🇺 Luxembourg||$224 billion||3.5%|
|#8||🇰🇾 Cayman Islands||$217 billion||3.4%|
|#9||🇭🇰 Hong Kong||$206 billion||3.2%|
|#10||🇧🇪 Belgium||$180 billion||2.8%|
|#11||🇸🇦 Saudi Arabia||$177 billion||2.8%|
|#12||🇹🇼 Taiwan||$171 billion||2.7%|
Why does China hold so much of the foreign-owned U.S. debt?
China has accumulated Treasury securities over decades, as part of its strategy to keep its domestic currency from strengthening. Interestingly, the export-heavy nation has reduced its swath of Treasurys in recent months, selling off close to $200 billion of them.
Although China has $1.11 trillion of Treasurys left in reserve, the general consensus is that dumping all of them at once would destabilize the global financial system, having an equally negative effect on China as well.
That said, with foreign nations holding U.S. debt, such a risk will always exist.
While it’s not surprising to see countries like China, Japan, or Brazil on the list of top foreign debt holders, what are places like the Cayman Islands, Luxembourg, or Ireland doing on the list?
Two simple facts help to explain these anomalies.
Firstly, despite having a population of just 60,000 people, the Cayman Islands is a hedge fund capital with over 10,000 funds domiciled there. Luxembourg makes the list for similar reasons, given that it is the European-based tax shelter equivalent.
Ireland, on the other hand, is the overseas headquarters for many U.S.-based tech giants like Facebook or Alphabet. Apparently, these corporations like to hold their overseas profits in highly-liquid Treasurys, rather than paying a repatriation tax to bring the cash back to American soil.
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