The Wall Street Journal seems to be dancing lockstep with me. Just when I write about the gap between the rich and the poor they’re backing me up, don’t they ? Witness The New Pay Gap: What Firms Report Paying CEOs Versus What They Take Home (Aug. 25th, 2019 by Theo Francis).
CEOs pay reports aren’t what they’re taking home. They are taking much more. Performance equity factors outsize market activity…by a lot.
Oracle reported paying co-CEO $190 MM over three years. Is that what he earned ? Not even close. His pay over those 3 years was valued at $535 MM- almost 3X as much -WSJ
As we can see, there’s the distinction between reported CEO pay and realizable pay, and you can read the graph on 18 companies presented there.
But that *shouldn’t* concern shareholders much, does it ? “Companies usually disclose the maximum possible award value, at award-date share prices, in a footnote.”
I’ve read enough 10Q and 10Ks in my life to cover 100 miles if printed and rolled out cover to cover.
And what is long term performance ? Is that really three years ? (consider your average long-term shareholders stick for decades).
It’s never been a better time to be a CEO.
Can you believe it they’ve got 9-year old CEOs ?
And he’s making more than you’ll ever make in your lifetime.