Beware, Overpaid CEOs, Here Comes Kamikaze Capital

Source: American Consequences
by Kim Iskyan

“’CEO Confidence Index Falls on Worries over Inflation’, Chief Executive magazine warned earlier this week. As it happens, CEOs themselves (those intimidating guys in the corner offices) know a thing or two about inflation … because they’ve seen a lot of it in their own paychecks. (But their confidence might soon be even more shaken, because … well, as Apple used to say, there’s an app for that.) The pay of big public American company chief executive officers last year rose by 16%, to $21.4 million, according to the Economic Policy Institute. Actual inflation (that is, how much prices rise, as measured by a basket of goods gauged by the Consumer Price Index, or CPI) — that cause of crumbling CEO confidence was up just 1.4%. In 2019, CEO pay rose 14% (inflation: 2.3%). And it’s unlikely that (compensation) inflation hasn’t shaken Average Joe Six-pack’s confidence, as his wages rose just 1.6% in 2019.” (06/05/21)