There is no crisis for them: US managers $22 billion in five years

This, however, contrasts with what US companies initially disclosed in their annual reports, when they announced that they had paid out about $16 billion in compensation, including shares valued at the prices they had at the time they were granted.
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Director, money, Photo: Shutterstock
Director, money, Photo: Shutterstock
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.
Ažurirano: 26.03.2015. 17:39h

CEOs in major American companies received a total of $22 billion in compensation in the five years since the financial crisis broke out, or six billion more than the companies disclosed in their annual reports.

About 300 CEOs, who in the period from 2009 to 2013 worked in companies whose shares are an integral part of the American stock market index S&P 500, received a total of about $22 billion in compensation, which was paid to them in the form of salaries, bonuses and shares .

Each manager received an average of $73 million, according to market research firm Ekilar.

This, however, contrasts with what US companies initially disclosed in their annual reports, when they announced that they had paid out about $16 billion in compensation, including shares valued at the prices they had at the time they were awarded.

The Reuters analysis did not include pensions or benefits, such as memberships in certain clubs or the use of company planes for private purposes. Also omitted from the analysis were the awards given to other leading managers, such as financial directors and other leading officials, as well as compensation to executive directors and presidents of boards who did not hold the mentioned position for a full five years.

Further growth in share prices in 2014, and in the current part of the year, could only increase the gap between the amount published in the annual reports and the real value of the awards, with the fact that a full insight into the state of the past year will only be available in a few months.

The total return for S&P 500 stocks, including dividends, was 166 percent for the period from the end of 2008 to the start of this week, according to the S&P and Dow Jones.

The impact of rising stock prices on CEO pay, shown in the analysis, will raise concerns about the extent to which the Fed's cheap money policy has affected personal income inequality.

Critics argue that by raising the value of assets such as stocks, the Fed's stimulus has helped the already wealthy, while average household income fell by four percent between 2009 and 2013.

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