C.E.O. Pay, America’s Economic ‘Miracle’

Annual-meeting season is unfolding for corporations, and the script is playing out as usual — chief executive officers will get their way. They may endure the verbal lashings of a couple of shareholders, perhaps face a slightly embarrassing “say on pay” vote about their princely income and then intone that after careful analysis, a compensation committee, advised by experts, unanimously approved their ridiculous pay package. READ MORE

Any day now, expect the AFL-CIO to produce another hugely inflated CEO-to-worker pay ratio, debunked in advance

Any day now, the AFL-CIO will report its annual CEO-to-worker pay ratio for 2018 based on a series of flawed statistical assumptions that results in a rather meaningless apples-to-oranges comparison and a wildly inflated ratio. See the labor oranization’s press release last year for CEO pay in 2017 and my criticisms of the AFL-CIO Executive Paywatch report here. READ MORE

What the Media’s Most Powerful Executives Were Paid in 2018

The bosses and directors of the world’s largest media companies aren’t going to win many popularity contests. They anger a lot of people, including investors, when they approve out-of-whack pay packages for their CEOs. Their lavish salaries and generous awarding of stock options to key leaders enrage politicians on the left and threaten to become a political issue in the upcoming presidential election. And they appear to have been oblivious to women’s concerns as disclosures of sexual harassment and bullying at the companies they oversee piled up over the past year or so. READ MORE

Zalando Brings Massive CEO Compensation Packages to Germany

Thrift and discretion have traditionally been seen as virtues in Germany—even in executive suites. Companies long resisted publishing individual compensation of top managers, whose pay is often a fraction of what many of their global peers receive. German chief executive officers rarely get more than €10 million ($11.2 million) annually. Volkswagen AG paid its CEO around €8 million last year, less than half the $22 million Mary Barra made at General Motors Co., even though VW’s sales are almost twice the size of GM’s. And on average, German leaders earn 97 times as much as employees, vs. 312 times as much at the biggest U.S. companies, according to the Economic Policy Institute in Washington. READ MORE

Is Merck & Co., Inc.'s CEO Being Overpaid?

Ken Frazier became the CEO of Merck & Co., Inc. in 2011. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO. READ MORE

Executive compensation excise taxes due soon

Companies that have a private foundation (or are otherwise related to a tax-exempt organization) should take immediate action to determine whether they owe an excise tax under new section 4960 of the Internal Revenue Code. Both publicly-traded and privately-held companies that have executives who serve as officers or employees of a private foundation controlled by the company are at particular risk, even if the executives receive no pay from the private foundation. Excise tax returns reporting liability under section 4960, and payments of any tax, are due by May 15 for calendar year taxpayers (although standard extension rules apply). https://www.jdsupra.com/legalnews/executive-compensation-excise-taxes-due-31915/