CEO pandemic salary cuts in new study called 'window dressing'

With a new study called "window decoration", the coronovirus epidemic is designed to make millions of employees unemployed, while Company executives seem to share the trouble. It's like CEO salary cuts. "Will the Dust Be Solved?" By corporate governance and analytics firm CGLytics. His report looks at companies in the Russell 3000 Index as they manage the COVID-19 crisis. 762 companies listed in Russell 3000 have "filed a kind of lawsuit for administrative compensation because of the pandemic" has detected. In the report, the Base salary reduction amount for the CEO is only 7.8 percent of the total compensation. Aniel Mahabier, founder of CGLytics, explained that the whole story of salary cuts is not telling the truth. It shows that companies are encouraging administrative wage cuts in response to the pandemic, but this administrative fee cut does not provide the true reflection of the basic salary and total wage package. The Associated Press survey showed that the wage package of CEOs in US companies exceeded $ 12.3 million before the epidemic. The AP survey also revealed that the median manager compensation rose 4.1% in 2019, and only 3.2% for typical workers in these large companies.

Lawmakers looking at CEO pay

Congresswoman Katie Porter (D-Calif) said in a statement that "when we see a headline saying that CEO's wages have fallen 10%, we think that their income is also reduced by 10%," but she said that is really not. Last year, at the House Oversight Committee hearing, when Porter questioned drug prices and a salary package of millions, when a CEO of a large pharmaceutical company questioned the price of drugs, the only answer he found was that a "someone else " got that much money. Porter said that the "insignificant wage cuts" found in the report show that the economic hardships experienced by the pandemic are only burdened by low-wage people. Senator Sherrod Brown (D-Ohio), report; While Congress was discussing a $ 1.9 trillion COVID-19 aid package, it highlighted that workers must be at the center of economic recovery. “Company executives, for show, cut base salaries while recouping their earnings through bonuses and other means,” Brown told Yahoo Finance. "The Democrats focused on giving the working Ohio residents the aid package they deserve, which they won". Mahabier said that really helping their company and the struggling employee "CEOs and executives" should consider greater sacrifices such as returning some of their compensation packages.

CEO pandemic salary cuts in new study called 'window dressing'

Source: Yahoo.Finance

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