All articles tagged with #executive pay
During a House hearing on health-care affordability, lawmakers pressed five health-insurer CEOs about why pay remains high as customers struggle; CVS Health's David Joyner explained his 2024 compensation was about $17 million (roughly $1.1 million base plus long-term incentives) and said he returned a bonus to a relief fund, while Democrats argued stock options and bonuses can incentivize prioritizing shareholders over patients.
President Trump issued an executive order targeting defense contractors, restricting stock buybacks and corporate profits during underperformance, and proposing caps on executive pay, aiming to improve defense production and accountability, though experts highlight ambiguities and implementation challenges.
President Trump criticized US defense contractors for slow military production and excessive executive pay, threatening to cut ties with Raytheon and urging increased investment in manufacturing and defense spending, while expressing concerns over shareholder profits taking precedence over military needs.
Despite the healthcare industry's underperformance in the stock market, top healthcare CEOs in 2024 amassed significant wealth, with long tenure and company stability contributing to their large pay packages, even as some companies underperformed and saw leadership changes.
Warner Bros Discovery CEO David Zaslav's pay will be significantly reduced following the company's planned split into two entities, although he received a substantial stock options award as an incentive to stay. The new employment agreement aligns his compensation with long-term performance and shareholder interests, amid shareholder disapproval of executive pay packages.
American Airlines is facing significant challenges, including labor disputes with pilots and flight attendants, executive pay controversies, and strategic missteps in sales channels. The airline's profitability heavily relies on its loyalty program, while its core operations struggle to turn a profit. Recent management changes and strategic reversals have added to the turmoil, raising questions about the airline's future stability and ability to improve customer and employee satisfaction.
Warner Bros. Discovery CEO David Zaslav's 2023 compensation package increased to $49.7 million, with a significant portion coming from stock awards and non-equity incentive compensation. The rise in compensation was attributed to a shift in the company's executive compensation plan to focus on cash flow, as well as increased free cash flow due in part to Hollywood strikes. The filing also revealed substantial pay increases for other top WBD executives, with the company's stock rising 20 percent in 2023 despite mixed financial results.
A report by Americans for Tax Fairness and the Institute for Policy Studies reveals that senior executives at 35 major US companies received more in compensation than their companies paid in federal taxes between 2018 and 2022, with a collective net federal income tax bill of negative $1.72bn. Advocacy groups are calling for an increase in the corporate tax rate, citing the need for big businesses to pay their fair share. President Joe Biden has also emphasized the importance of ending tax breaks for big corporations and executives, while the report highlights how aggressive tax avoidance and excessive executive pay negatively impact working families and small businesses.
Disney formally rejected Nelson Peltz's board nominees and put forward its own slate, while revealing Bob Iger's $31.6 million pay for fiscal 2023. The company cited ongoing commitment to a strong board and strategic growth initiatives. The preliminary proxy statement also detailed interactions with Peltz and Trian Group, reasons for rejecting their nominees, and progress in CEO succession planning. Additionally, Disney disclosed executive pay for former CEO Bob Chapek and former CFO Christine McCarthy, as well as the re-hiring of Brian Chapek, son of Bob Chapek, as a production executive at Marvel Studios.
Netflix plans to award its co-chief operating officers, Ted Sarandos and Greg Peters, identical compensation packages for 2024 worth $40 million each. The packages include a $3 million base salary, a target bonus of $6 million, a time-based restricted stock unit (RSU) award valued at $15.5 million, and a performance-based restricted stock unit (PSU) award valued at $15 million. The change reflects Netflix's decision to no longer allow executives to choose between cash or stock compensation. The company's CEO, Reed Hastings, will receive a package worth $1 million, while other executive officers will receive varying compensation amounts.
Barry Diller, chairman of IAC and Expedia Group, suggests that top executives and highly-paid actors should take a 25% pay cut to address the salary gap between them and lower-paid workers. Diller also emphasizes the need to settle the ongoing strikes by the Writers Guild of America and SAG-AFTRA by September 1 to prevent devastating effects on the industry. He dismisses concerns about AI replacing actors and writers, stating that it is being overly hyped. Additionally, Diller plans to sue to protect copyrighted material from generative AI.
A bipartisan bill proposed by Senators Sherrod Brown and Tim Scott would allow regulators to claw back bank executives’ compensation from the two years before a failure and impose stiff fines on them. The bill would authorize the FDIC to recoup proceeds from stock sales as well as bonuses that executives receive in the 24 months leading up to a failure. The bill’s prospects in the Republican-controlled House remain uncertain.
Netflix shareholders have rejected the company's 2023 executive pay package, which includes a $166 million compensation for top executives. The non-binding "say on pay" vote follows a call by striking writers to reject the proposed compensation to top executives. The Writers Guild of America West has been demanding better compensation for writers, and the union said that a vote during the weeks-long strike would be "inappropriate." The vote tally will be reported in a regulatory filing, and the board of directors can overrule the "say on pay" vote.
Netflix shareholders have rejected the company's executive pay packages, which included $34 million for CEO Reed Hastings and $19 million for content chief Ted Sarandos. The vote was non-binding, but it sends a message to the company's board that investors are unhappy with the sky-high compensation packages for top executives.
Netflix shareholders have withheld their support for the company's executive pay package in a non-binding vote, following a call by striking Hollywood writers to reject the proposed 2023 compensation. The Writers Guild of America West had urged investors to vote against the compensation offered to Netflix's top executives, arguing such a vote would be "inappropriate" during the strike, which has entered its fifth week.