CEOs Who Make 1000 Times What Their Workers Do

By Douglas A. McIntyre Published Apr 18, 8:26AM EDT

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CEOs Who Make 1000 Times What Their Workers Do — © Stephen Brashear / Getty Images

The U.S. Securities and Exchange Commission issued a rule in 2015 that required public companies to disclose the ratio of CEO pay to the median compensation of their employees. The rule went into effect in 2017. The figures showed that some chief executives were paid at a stunning multiple of the people who worked at their corporations. In 2019, seven CEOs made 1,000 times more than the median pay.

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The 1,000-plus pay club is made up of the following:

CEO	Company	Pay	Ratio
Kevin Clark	Aptiv	$15.2 million	2,077 times
Kevin Johnson	Starbucks	$19.2 million	1,675 times
James Quincey	Coca-Cola	$18.7 million	1,657 times
Steve Milligan	Western Digital	$12.9 million	1,279 times
André Calantzopoulos	Philip Morris International	$22.1 million	1,156 times
Dave Mosley	Seagate Technology	$10.3 million	1,081 times
Miguel Patricio	Kraft Heinz	$44.2 million	1,034 times

CEO compensation usually is made up of base salary, bonus and stock options.

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Whether CEOs make too much money has been argued for years. Many shareholders have tried to set new rules so that they can vote on the compensation of management in companies in which they own shares. This would be done when people cast their ballots for directors and other issues that management and these directors put on annual ballots. The results of these are put into proxy statements (DEF 14A). These documents often contain pages of formulas to defend CEO compensation.

Often, pay does not appear to be directly linked to stock performance or corporation financial results. As an example, Kraft Heinz stock dropped 27% in the 2019 calendar year. To be fair, shares of many of the other companies on this list rose more than the S&P 500 last year. It still begs the question of whether a CEO should make so much more than the median worker compensation.

For 2020, most stocks are likely to perform poorly, and many very poorly, due to the COVID-19 pandemic. Boards will be forced to consider new metrics. Some may peg stock performance directly to the outperformance of the S&P 500. However, they may decide that the business environment is so catastrophic that they will pay anything.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.