Earlier this month, the SEC passed a new rule to take place in 2017. Public companies will be required to disclose the CEO’s “pay ratio.”
That ratio compares how much the company is paying the CEO compared to how much, on average, the company pays an employee. The idea is to give investors a guideline for rating fair CEO pay.
In honour of this new rule, Glassdoor sifted through its trove of self-reported employee salary data. It compared median average employee compensation in its database to CEO total compensation among companies on the S&P 500. (It had enough data on 441 companies.) From this, Glassdoor produced a ranking of CEO pay ratios.
Since the salary data is self-reported, the data isn’t perfect. But its still a interesting look employee vs. CEO pay.
We’ve sifted through the massive list to come up with this list of CEOs who are paid at least 100 times more than their employees.
Pay ratio: 130
Average employee pay: $US126,999
CEO pay: $US16.5 million
For every dollar paid to an Intuit employee on average, CEO Brad Smith made $US130.
Pay ratio: 152
Average employee pay: $US87,476
CEO pay: $US13.3 million
For every dollar paid to a CSC employee on average, CEO Mike Lawrie made $US152.
Pay ratio: 501
Average employee pay: $US121,249
CEO pay: $US60.7 million
For every dollar paid to a Qualcomm employee on average, CEO Steven Mollenkopf made $US501.
Pay ratio: 573
Average employee pay: $US117,415
CEO pay: $US67.3 million
For every dollar paid to an Oracle employee on average, founder Larry Ellison made $US573 for his final full year as CEO.
He's no longer CEO, but is executive chairman and CTO, although he's still the acknowledged leader of the company. He took a small pay-cut when he stepped down.
Pay ratio: 615
Average employee pay: $US137,000
CEO pay: 84.3 million
For every dollar paid to a Microsoft employee on average, CEO Satya Nadella made $US615.
This high ratio had a lot to do with the huge pay package Nadella was offered when he first took the CEO job.