The list identifies the 100 Most Overpaid CEOs from the S&P 500 index, highlighting those CEOs deemed excessively compensated based on their performance. It specifically focuses on CEOs who were addressed at annual meetings held between July 1, 2022, and June 30, 2023. This year’s findings also incorporate insights from annual voting patterns and regression analysis conducted by HIP Investor.

Methodology

Progressive Shopper investigates the problem of excessive CEO compensation in connection to corporate performance, shedding light on discrepancies in the S&P 500. Using extensive data and research, we identify the top 100 most overpaid CEOs and show trends in executive pay practices.
Updates and Limitations: Our findings are updated constantly to reflect the most recent shareholder meetings and SEC filings. The study is contingent on the availability of reliable and comprehensive data from third-party sources and public filings.

Scoring and Categorization:

1. Excessively Overpaid (Red Circle):CEOs with compensation significantly misaligned with performance and high shareholder opposition.
2. Moderately Overpaid (Yellow Circle): CEOs with some alignment issues or mixed shareholder voting outcomes.
3. Fairly Compensated (Green Circle): CEOs with pay aligned with performance and strong shareholder support.

Frequently Asked Questions (FAQs)

1. What defines an ‘overpaid’ CEO?
   An ‘overpaid’ CEO is typically defined as one whose compensation is significantly higher than the industry average for similar roles and disproportionately high compared to the pay of average employees within the company. This often includes salaries, bonuses, stock options, and other perks.
2. Why focus on CEO pay?
   CEO pay is a barometer of economic inequality within corporations. Extreme disparities in compensation can highlight issues of fairness and equity within companies, potentially impacting employee morale and public perception. According to the Economic Policy Institute, between 2009 and 2019, the incomes of the top 0.1% of Americans increased 3.5 times faster than those of the bottom 90% of earners. By highlighting excessive CEO compensation, we aim to foster a dialogue about more equitable pay structures within companies.
3. How is CEO pay decided?
   CEO compensation is usually determined by a company’s board of directors, particularly by a compensation committee made up of board members. This pay often reflects a combination of the company’s financial performance, individual performance metrics, and comparative salaries within the industry.
4. What are the impacts of high CEO pay on a company?
   While high CEO pay can attract top talent, excessive compensation may also lead to dissatisfaction among other employees, a perceived disconnect between top management and workers, and scrutiny from shareholders and the public, especially if the company’s performance does not justify such pay.
5. What can shareholders do if they believe a CEO is overpaid?
   Shareholders can vote on executive compensation through mechanisms like ‘Say on Pay’ votes, which provide them an opportunity to approve or disapprove of executive pay packages. They can also engage directly with board members or express their concerns through shareholder resolutions.
6. Are there examples of companies that have adjusted CEO pays due to public or internal pressure?
   Yes, there are instances where companies have adjusted their compensation strategies in response to pressure from shareholders or public backlash. These adjustments may include reducing bonuses, changing performance metrics, or linking pay more closely to long-term company performance
7. How do we track and report on CEO compensation?
   Progressive Shopper tracks and reports on CEO compensation using public disclosures, financial filings, and research reports. We analyze this data to inform our audiences about trends in executive pay and advocate for more equitable compensation practices.
8. What steps are Congress and the executive branch already doing to limit CEO pay compensation?
   Congress and the executive branch have taken various steps to address CEO pay, particularly focusing on transparency and shareholder rights. However, there are ongoing debates about the effectiveness of these measures and what more could be done.
   • Dodd-Frank Wall Street Reform and Consumer Protection Act: One of the most significant measures in place is the Dodd-Frank Act, which includes several provisions related to executive compensation.
   • Say on Pay: This allows shareholders to have a non-binding vote on executives’ compensation and golden parachutes. This provision aims to make shareholders more informed and engaged in the compensation practices of companies.
   • CEO Pay Ratio Disclosure: Companies are required to disclose the ratio of the CEO’s compensation to the median compensation of the employees. This is intended to provide a clearer picture of pay disparities within companies.
   • Securities and Exchange Commission (SEC) Rules: The SEC has implemented various rules under Dodd-Frank to enhance transparency around executive compensation. This includes detailed disclosure requirements about the components of executive pay.
9. Are there any other groups working on this topic?
   Yes, Refer to As You Sow, Congressional Progressive Caucus Center.

Other ways to help

Curious about other ways to take action? Here’s a list of of organizations directly advocating democratic rights!

Press

For media inquiries please contact: Mark Hanis (mark@progressiveshopper.com)