Worst-paying blue chip employers bolstered CEO pay in pandemic, More than half of companies with low-wage executives in the middle of the S&P 500 Index have raised CEO pay by changing the performance appraisal rules during the COVID-19 epidemic, according to a left-wing policy group report published Tuesday.
A report from the Institute for Policy Studies found that 51 of these 100 companies, including beverages and snack makers Coca-Cola Co (KO.N), shipping company Carnival Corp (CCL.N) and and fast food corporation Yum Brands Inc (YUM .N), have reduced the remuneration of average employees by 2% to $ 28,187 on average by 2020 compared to 2019, just as the median compensation of their CEOs has increased by -29% went to 15.3 million.
These findings provide incentives for investors who oppose higher pay rises in non-binding votes held at annual corporate stock exchange meetings. More companies are facing shareholder attacks for not paying their CEO this year than last year, reports Reuters. Learn more.
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Companies that have studied the report have tightened management compensation by lowering performance standards, awarding final bonuses and changing stock rewards linked to financial results with timely allocated grants, the report found.
A Carnival spokesman said via email CEO Arnold Donald had not received a cash bonus in 2020 and his total compensation for the past year had dropped by 29% compared to 2019.
A Coke spokesman commented on a separate company statement, which noted that about 1,000 employees received special awards, in addition to management.
“We will not rely on corporate boards to address the issue of overtime CEO compensation,” said Sarah Anderson, co-author of the report on the report in an interview. Anderson suggested in the report that companies with higher pay rates should be taxed more.
The average payroll for the top 51 companies in the report was 830-to-1.
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The board of Yum Brands has approved a voluntary adjustment to the bonus program that resulted in a $ 1.4 million bonus from CEO David Gibbs that he would not have received, according to a security statement. He also received a one-time stock prize of $ 882,127, with a total 2020 compensation of $ 14.6 million, according to the completion.
The company’s board said the increase in compensation was appropriate given that Gibbs and other executives had helped keep the business afloat and placed it in the aftermath of the epidemic.
In a revised statement, Yum Brands said Gibbs donated his basic salary and used it to help pay one-time bonuses of $ 1,000 to restaurant managers around 1,200.
Yum Brands has appointed a part-time employee of his fast-food chicken company KFC as its mid-term employee, with a total compensation of $ 11,377, on inclusion.
