Stellantis’ CEO is expected to earn 19 million euros for fiscal 2021. The presidential finalists have castigated this level of remuneration and shareholders are grumbling, but the board of directors is highlighting the performance over the past year.
+569% for the boss of Apple, +65% for the boss of Goldman Sachs: the median income of the CEOs of the 100 largest U.S. companies increased by 31% in 2021, according to a study by Equilar.
While in France, Carlos Tavares’ remuneration of 19 million euros in 2021 is being debated, it is at the same level as the average remuneration of the executives (including bonuses and stock options) of the 100 largest American companies (20,000 dollars), according to the firm Equilar. This is an average. With 178 million dollars, Intel’s CEO Patrick Gelsinger is by far the best paid among them. He is ahead of Tim Cook, the CEO of Apple ($99 million) and Hock Tan of Broadcom ($61 million) and Satya Nadella of Microsoft ($50 million).
If the figures in absolute value are breathtaking, the percentage changes are downright dizzying. For example, the remuneration of Apple’s boss has jumped by 569% and that of Goldman Sachs by 65%.) This while the median income of the CEOs of the 100 biggest American companies has increased by 31% in 2021.
Small decline in median income in 2020
Between salaries, bonuses and stock options, their median incomes had fallen by 2% by 2020, the year the pandemic broke out, the firm recalls.
“The sharp increase in salaries is likely due to the fact that many companies have chosen to reward their CEOs with bonuses and stock awards for guiding their organizations through turbulent times and driving revenue growth,” the firm argues.”
As a result of these large increases, the ratio of bosses’ pay to their employees’ pay also climbed. On average, bosses earned 254 times more than their employees in 2021, up from 238 times the year before. The median pay of employees at these 100 large companies also increased by 4 percent to $71,869. Only nine of the companies in the ranking are women, none of whom are among the 10 highest-paid executives, the firm notes.
Biden wants to tax the very rich more
This is a good reason for Joe Biden’s administration to tax the wealthiest Americans more in its 2023 budget proposal. This proposal entitled “Billionaires Minimum Income Tax” targets about 700 of the richest Americans by establishing a minimum tax rate of 20% on incomes above 100 million dollars annually. The new measure, which must be approved by Congress before it can be implemented, could raise up to $360 billion in new revenue over ten years.
A previous study by the U.S. administration claimed this fall that 400 billionaire households paid an average of only 8.2 percent in taxes on their income between 2010 and 2018, a rate often well below that of many American households.
With this legislation, Tesla executive and world’s richest man Elon Musk is expected to pay an additional $50 billion in taxes and Amazon founder Jeff Bezos some $35 billion
“The rich will finally pay their fair share,” Joe Biden said in late March, using the example of firefighters and teachers who face higher tax rates than billionaires who take advantage of tax breaks. “It’s not fair.”