Live Nation, Netflix, Paramount Global & Warner Bros. Discovery CEOs Among Most Overpaid Last Year, Says Nonprofit As You Sow
16.11.2023 - 01:07
/ deadline.com
Media, entertainment and tech companies held their own in the top 25 ranking of overpaid CEOs in 2022 by nonprofit As You Sow. Live Nation’s Michael Rapino ($139 million pay package) topped the list, which also included Netflix, Paramount Global and Warner Bros Discovery, as well as Charter, Apple and Alphabet.
Overall CEO pay has been front and center this year during a season of record labor unrest from writers and actors to auto workers. We won’t know 2023 pay for most companies until next spring.
The shareholder advocacy group’s ranking of S&P 500 companies, its tenth, is particular as it starts with pay, data that’s been out for months, and calculates what it calls overpay by measuring compensation against three metrics: total shareholder return; the number of shares that are voted against a CEOs pay package at the annual meeting; and the ratio of CEO pay to median worker pay — a gap that has been steadily increasing and is being scrutinized by unions and policymakers.
As You Sow weights the first two data points at 40% each, and the pay ratio at 20% to develop its ranking. The numbers are for 2022 pay, the latest available. Pay packages for 2023 will start rolling out in April for companies on a calendar year.
CEO pay packages include salary and bonus as well as stock options and grants that vest over time and may be underwater. However, grants tend to be awarded year after year. Shareholder votes on pay are advisory only, meaning non-binding, but high ‘no’ votes don’t look good.
Using its metrics, the firm put Rapino’s amount of overpay at $123 million and noted that about 81% of institutional shares and 54% of reported shares voted against his 2022 package. The pay ratio – CEO compensation compared to average