The Highest-Paid C.E.O.s in 2020

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Alex Karp of Palantir made probably the most of any public firm C.E.O. final 12 months, with a bundle value $1.1 billion.Credit…Christophe Petit Tesson/EPA, through Shutterstock

Paying (lots) for efficiency

Six of the 10 largest govt pay packages of all time had been awarded final 12 months. This and different findings come from a brand new survey of the 200 highest paid C.E.O.s at public firms performed for The Times by Equilar, a consulting agency. “Even in a gilded age for executive pay, 2020 was a blowout year,” writes The Times’s Peter Eavis.

The spike is due in giant half to linking C.E.O.s’ pay to inventory costs. This “pay-for-performance” construction is meant to align managers’ incentives with these of the corporate’s homeowners, the shareholders. But it additionally raises questions on how a lot credit score executives deserve for rising inventory costs, and whether or not the efficiency circumstances connected to inventory awards are suitably powerful. C.E.O. pay jumped 14.1 % final 12 months, whereas the median employee bought a 1.9 % increase.

C.E.O.s in the survey acquired 274 occasions the pay of the median worker at their firms, up from 245 occasions in the earlier 12 months. Around two-thirds of firms with the most important pay packages had wider gaps between govt and worker pay after the pandemic.