The 17 highest paid CEOs in the world in 2017 each have salaries above $28 million, earning hundreds of times more than what the regular employees at their companies do. The United States is an absolute leader in CEO pay, as top executives at the largest companies get paid 271-times more on average than a typical worker, according to a European Policy Institute study. In other countries, because of either high income taxes or lower cost of living, CEOs get paid less. In addition, in some countries, especially in Europe, CEO compensation is capped in order to reduce income inequality.
According to EPI, the average CEO compensation at the largest companies, including stock options, amounted at $15.6 million. Bloomberg estimated that CEO pay averages $16.9 million among S&P 500 companies, which is 2.6-times higher than what the CEOs of foreign companies make. On the other hand, in China, CEOs get paid 90% less than the global average, although many companies in the country don’t disclose executive compensation and many CEOs get lots of benefits, such as housing that is not included in disclosures.
One of the main reasons why American CEOs have such high salaries is because the bulk of the world’s largest companies are headquartered in the U.S. In addition, the regulations in the country allow these companies’ board of directors to pay higher salaries to top executives and to take tax deductions on them. In fact, in many cases, when activist investors launch campaigns to push for change at publicly-traded companies, they point out the disparities between the company’s performance and the high CEO pay. To address this issue, the Securities and Exchange Commission imposed a rule in 2015 that requires public companies to disclose the ratio of the compensation of CEOs and the median pay of employees. Companies should start filing those disclosures next year for the compensation paid in 2017.
PTstock/Shutterstock.com
As stated earlier, in the U.S, the average gap between the CEO and employees is 271-to-1, although it’s lower than the 376-to-1 ratio that was registered in 2000. By comparison, in 1989, this ratio stood at 59-to-1, while in 1965, it was 20-to-1. However, regular citizens don’t realize how big this discrepancy actually is, which is one of the reasons why the difference in compensation between CEOs and average workers is big. A couple of years ago, Chulalongkorn University’s Sorapop Kiatpongsan and Harvard Business School’s Michael Norton conducted a study, which examined how people see the discrepancy between top executives and unskilled workers and what this discrepancy actually was. The study showed that in the U.S, people perceived the difference in pay as 30-to-1, while in fact it was 350-to-1. This misconception leads to a lack of effort from people to pressure their governments and employers to narrow the gap.
Having said that, let’s take a closer look at the 17 highest paid CEOs in the world in 2017. The data on compensation is taken from Equilar‘s list of the largest CEO pay packages. Afterwards, don’t miss our article on the 11 Most Innovative Companies in the World.
17. Brian L. Roberts
Compensation: $28.64 million
Brian L. Roberts has been the CEO of Comcast Corporation (NASDAQ:CMCSA) since 2002. Roberts was appointed as Comcast Corporation (NASDAQ:CMCSA)’s President in 1990, having joined the company in 1981, right after his graduation from the Wharton School of Business. In 2004, Roberts was appointed as Comcast Corporation (NASDAQ:CMCSA)’s Chairman. Under his leadership, Comcast became a Fortune 50 company, while its revenue surged to $80.4 billion in 2016 from $657 million in 1990.
Copyright: jetcityimage / 123RF Stock Photo
16. Gregory B. Maffei
Compensation: $29.83 million
Liberty Interactive Corp (NASDAQ:QVCA)‘s CEO Gregory B. Maffei was appointed to his role in February 2006. In addition to CEO, Maffei is also Liberty Interactive Corp (NASDAQ:QVCA)’s President. Last year, Maffei’s compensation increased by 11%, while Liberty Interactive Corp (NASDAQ:QVCA)’s stock declined by over 28%.
Leonardo da/Shutterstock.com
15. Joshua W. Sapan
Compensation: $30.49 million
Joshua W. Sapan, the CEO of AMC Networks Inc (NASDAQ:AMCX), saw his compensation surge by 72% last year, according to Equilar data, while the company’s revenue appreciated by 7%. Sapan has served as AMC Networks Inc (NASDAQ:AMCX)’s CEO and President since March 2011.
racorn/Shutterstock.com
14. Virginia M. Rometty
Compensation: $32.31 million
International Business Machines Corp. (NYSE:IBM)‘s CEO, Virginia M. Rometty, is one of the few female CEOs among the 17 highest paid CEOs in the world in 2017. She was appointed to the CEO and President position in early-2012 and later that same year was also appointed as International Business Machines Corp. (NYSE:IBM)’s Chairman. Last year, Rometty’s compensation grew by 63%.
Tauke / Shutterstock.com
13. Jeffrey L. Bewkes
Compensation: $32.59 million
Jeffrey L. Bewkes is the CEO and Chairman of the Board of Time Warner Inc (NYSE:TWX). Between 2005 and 2007, Bewkes served as the top subordinate to Time Warner’s Chairman and CEO Dick Parsons, and succeeded him in 2008. Time Warner Inc (NYSE:TWX) is currently in the process of being acquired by AT&T Inc. (NYSE:T) and Bewkes announced earlier this year that he would leave Time Warner after the deal is completed.
george green/Shutterstock.com
12. Alex A. Molinaroli
Compensation: $32.61 million
Next in line on the list of the 17 highest paid CEOs in the world in 2017 is Johnson Controls International plc (NYSE:JCI)‘s CEO and Chairman, Alex A. Molinaroli. Molinaroli has been with Johnson Controls International plc (NYSE:JCI) since 1983. Between 2007 and 2013, Molinaroli served as President of Johnson Controls International plc (NYSE:JCI)’s Power Solutions division and in 2013 he was appointed as Vice Chairman. That same year, he was named as the company’s CEO and became the Chairman of the Board the year after that.
Pixabay/Public Domain
11. Margaret C. Whitman
Compensation: $32.94 million
Margaret C. Whitman is the CEO of Hewlett Packard Enterprise Co (NYSE:HPE). In 2011, Whitman was appointed the CEO of Hewlett-Packard, making it one of her priorities to re-establish the company’s PC business that her predecessor had planned to scrap. In 2015, Hewlett-Packard split into two companies, Hewlett Packard Enterprise Co (NYSE:HPE) and HP Inc (NYSE:HPQ), and Whitman became the CEO of Hewlett Packard Enterprise Co (NYSE:HPE).
10. Robert A. Kotick
Compensation: $33.07 million
Activision Blizzard, Inc. (NASDAQ:ATVI)‘s CEO Robert A. Kotick started at the company by acquiring a stake in its predecessor, Activision, in 1990. A year later he was appointed CEO of Activision and in 2008 he orchestrated the merger between Activision and Blizzard, creating Activision Blizzard, Inc. (NASDAQ:ATVI).
Barone Firenze / Shutterstock.com
9. David M. Zaslav
Compensation: $37.19 million
David M. Zaslav has been the CEO and President of Discovery Communications Inc. (NASDAQ:DISCA) since 2007, having joined the company after serving for two decades at NBC Universal. Under his leadership, Discovery Communications Inc. (NASDAQ:DISCA) went through a restructuring in 2008, having spun-off its Ascent Media business.
RomarioIen/Shutterstock.com
8. Safra A. Catz
Compensation: $40.94 million
Oracle Corporation (NYSE:ORCL)‘s CEO Safra Catz is the highest paid female CEO in the U.S and the highest paid female on our list of the 17 highest paid CEOs in the world in 2017. She joined the company in 1999 and between 2005 and 2014 she served as the company’s President. In 2011, Catz was appointed Oracle Corporation (NYSE:ORCL)’s CFO, holding the position until 2014, when she replaced founder/CEO Larry Ellison together with Mark Hurd, the second CEO of Oracle Corporation (NYSE:ORCL).
Ken Wolter/shutterstock.com
7. Robert A. Iger
Compensation: $40.99 million
Robert A. Iger was appointed as the CEO and President of Walt Disney Co (NYSE:DIS) in 2005. Between 2000 and 2005 Iger served as Walt Disney Co (NYSE:DIS)’s Chief Operating and Officer and President. In addition, Iger is the Chairman of Walt Disney Co (NYSE:DIS)’s Board.
Copyright: blanscape / 123RF Stock Photo
6. Mark V. Hurd
Compensation: $41.12 million
Mark V. Hurd is the second CEO of Oracle Corporation (NYSE:ORCL), having been appointed together with Safra Catz in 2014 to replace the departing CEO Larry Ellison. When Ellison stepped down as the company’s CEO, he became executive chairman and Chief Technology Officer. However, when the changes at Oracle Corporation (NYSE:ORCL) were announced, Hurd, Catz, and Ellison said their jobs wouldn’t change despite the changes in their titles.
Pixabay/Public Domain
5. Mark G. Parker
Compensation: $47.62 million
Mark G. Parker is the Chairman, President and CEO of Nike Inc (NYSE:NKE). Parker has been employed at Nike Inc (NYSE:NKE) since 1979 and in 1987 he was appointed as divisional Vice President for product development. In 1989 he moved up to Corporate Vice President, before being named General Manager in 1993. In 1998 Parker was promoted to the Vice President of Global Footwear and in 2001 he became President of the NIKE Brand. In 2006 he was appointed as the third CEO of Nike Inc (NYSE:NKE) and last year he was named as the company’s Chairman of the Board.
TonyV3112 / Shutterstock.com
4. Fabrizio Freda
Compensation: $47.69 million
Estee Lauder Companies Inc (NYSE:EL)‘s CEO Fabrizio Freda joined the company in 2008 as President and Chief Operating Officer. A year later, he replaced CEO William P. Lauder to become the new CEO of the company. Prior to joining Estee Lauder Companies Inc (NYSE:EL), Freda was the President of the Global Snacks division at Procter & Gamble Co (NYSE:PG), a company that he joined in 1982.
360b / Shutterstock.com
3. David O’Connor
Compensation: $54.04 million
David O’Connor is the President and CEO of Madison Square Garden Co (NYSE:MSG). He joined the company in 2015, helping to complete the spin-off of Madison Square Garden Co (NYSE:MSG) from the company that is currently known as MSG Networks Inc (NYSE:MSGN). Prior to joining Madison Square Garden Co (NYSE:MSG), O’Connor spent over three decades at Creative Artists Agency.
Pabkov/Shutterstock.com
2. Leslie Moonves
Compensation: $68.59 million
CBS Corporation (NYSE:CBS)‘s CEO, Chairman, and President Leslie Moonves has been with the company since 1995, when he joined the company as President of CBS Entertainment and was appointed as CEO of CBS in 2003. Between 2004 and 2005, Moonves served as Co-President and Co-Chief Operating Officer of Viacom, the predecessor to CBS Corporation (NYSE:CBS). In 2005, Viacom split, and CBS Corporation became an independent company headed by Moonves.
Kobby Dagan / Shutterstock.com
1. Thomas M. Rutledge
Compensation: $98.01 million
Thomas M. Rutledge has served as CEO of Charter Communications, Inc. (NASDAQ:CHTR) since 2012 and last year was appointed as the company’s Chairman of the Board. Between 2012 and 2016, Rutledge also served as Charter Communications, Inc. (NASDAQ:CHTR)’s President. Last year Rutledge had a five-fold increase in compensation, mainly due to a big award of stock options valued at $78 million. The options were granted because Rutledge had signed a new five-year contract.
HodagMedia / Shutterstock.com
These are the 17 highest paid CEOs in the world in 2017 based on public disclosures. It should be noted that many companies don’t disclose information regarding employee compensation, or reward their top executives in different ways that don’t reflect in their compensation packages, so there might be other CEOs that didn’t make the list.
Disclosure: None
