Latest news with #CEOpay
Daily Mail
13 hours ago
- Business
- Daily Mail
Mutiny at CNN's parent company as fat cat CEO who tore up network is shunned by shareholders
Shareholders of CNN parent company Warner Bros. Discovery voted to reject CEO David Zaslav's eye-popping $52million pay package at the company's annual meeting this week. The media giant disclosed Tuesday in regulatory filing that nearly 60 percent of its shareholders voted to reject the package, which included $3million in salary, $23.1million in stock, $23.9million in non-equity incentive plan compensation and $1.92million for things like a car allowance and personal security. Warner Bros. Discovery's board of directors had recommended that shareholders vote the other way, but the appeal didn't sway them. The votes comes after sweeping layoffs at both CNN and Warner Bros. Discovery during Zaslav's tenure. The CEO and his chief financial officer, Gunnar Wiedenfels, have managed to reduce Warner Bros. Discovery's $55billion debt by some $21 billion, while asking employees to make sacrifices over the past three years. Meanwhile, the median Warner Bros. Discovery staffer makes an average annual total compensation of $130,316 - about one four-hundredth what Zaslav was set to earn. The decision does not necessarily mean Warner Bros. Discovery will scale back his pay, but it could light a fire under those calling the shots. Netflix, for instance, decided to cap its co-CEOs base salaries after a similar vote in 2023. If Warner Bros. Discovery follows suit, Zaslav could be subject to a cap as well. The company said in a statement that it was taking the development 'seriously,' after more than 1billion shareholders voted to reject the package. 'The Warner Bros. Discovery Board of Directors appreciates the views of all its shareholders and takes the results of the annual advisory vote on executive compensation seriously,' it read. 'The Compensation Committee of the Board looks forward to continuing its regular practice of engaging in constructive dialogue with our shareholders.' The the statement came a year after Zaslav saw his compensation swell by nearly five percent from 2023 to 2024. Other execs' pay packages - including Wiedenfels' - were also rejected, five months after CNN laid off 200 workers from its struggling TV division. At the time, a CNN source told the Daily Mail that the division had become 'bloated' and overstaffed with people who do the bare minimum, following Warner Bros. massive merger with Discovery three years ago. Since then, Zaslav and Wiedenfels have engaged in a cost-cutting campaign that's done little to help the conglomerate's share price, which is down 7 percent year to date. The move could see CNN spearhead a new, cable-centering company as Zaslav's eyes and ears at the network, CEO Mark Thompson, continues to preach the idea of a more digital future Last month, CNBC reported that Warner Bros. Discovery is mulling a separation of its linear networks from its studio and streaming assets, much like Comcast has done with MSNBC and CNBC. The move could see CNN spearhead a new, cable-centering company as Zaslav's eyes and ears at the network, CEO Mark Thompson, continues to preach the idea of a more digital future. The talks, first reported by CNBC, come after a dip in share price from the conglomerate and a quarterly review that fell short of estimates. The report showed revenue down 1 percent from the same span last year and net income down 62 percent CNBC's David Faber reported that the talks came after a dip in share price from the conglomerate that caused a stir from investors. Just months ago, Zaslav reportedly dismissed the move as a bad idea. That was before a quarterly review that fell short of estimates. Earlier this year, NBC parent Comcast announced it would spin off most of its cable networks into a separate company after years of hindrance on its own share price. If WBD does, too, properties like CNN, TNT, and TBS will no longer fall under its jurisdiction. The new, yet-to-be announced firm would also be ripe for acquisition.
Irish Times
a day ago
- Business
- Irish Times
Kenny Jacobs €374,830 salary is a soft target; the problem lies elsewhere
The yawning gap between the salaries paid to senior executives and the wages of their workers is just one of the many drivers of the discontent that permeates even apparently prosperous and stable liberal democracies such as our own. Figures for the scale of the gap are astounding. The most recent annual study carried out by the left-leaning US Economic Policy Institute found that, by 2024, US chief executive pay had grown by 1,085 per cent since 1978 compared with a 24 per cent rise in typical workers' pay. The situation in Europe is not much better. The European Trade Union Institute calculates that the chief executives of Europe's top companies are paying themselves 110 times more than the average worker. The downside to this sort of inequity is well rehearsed both at the level of individual enterprises and for society as a whole. According to the European Trade Union Institute, 'people who are dissatisfied with their pay and working conditions, and have little say over their job, are more likely to lose faith in democratic institutions'. READ MORE Unsurprisingly the Economic Policy Institute lay the blame for the apparently inexorable rise of CEO pay at the door of capitalism and particularly the stock market. The pay of the chief executive of a company listed on the stock market is usually linked to the performance of its share price, something over which, in truth, they have only limited influence. Even a mediocre chief executive will benefit from a bull market that pushes up his or her company's shares, the US think tank argues. The best paid chief executives usually have some sort of leverage over the board of the company, the members of which are supposed to ensure that shareholders are getting their money's worth, according to the Economic Policy Institute. The salaries of chief executives of these listed companies are publicly disclosed and the remuneration of a handful of rock star chief executives becomes the benchmark, both inside their organisations and also at smaller or less successful listed companies and across the wider ecosystem. Remuneration levels at publicly listed companies in turn have a trickledown effect on companies that are not listed on the stock market and, ultimately, the pay of top executives in Irish State-owned companies and bodies, a topic of perennial interest to the Irish public. Rarely will a month go by without details of the pay packet of some semi-State company boss being made public. Such transparency is healthy but the underlying presumption always seems to be that the wages are excessive and unjustifiable. This week we learned that 150 employees of the DAA – which runs Dublin and Cork Airports as well as duty-free operations at other international airports – earn more than €150,000. Not only that, the €374,830 earned by chief executive Kenny Jacobs is dwarfed by another, unnamed executive who earns between €475,000 and €500,000. It's a lot of money. The justification offered for these salaries is fundamentally a chain of relativities leading back to Elon Musk , Tim Cook and the other titans jostling for the title of the world's highest paid CEO. Ask Eamon Ryan. It was also reported this week that the former minister for transport warned his colleagues in the last government that departments and agencies needed more flexibility when it came to seeking chief executives for commercial State bodies. 'Given the sector-specific context and diversity in play, a 'one-size-fits-all' approach is not working in attracting talent, particularly when international consideration and comparators are taken into account,' he told the pay review group set up by the government last summer. The Government has indicated it will update the rules on State company remuneration to reflect market rates, It might be asking a bit much of the Irish Government to buck a 45-year trend that has seen senior executive pay increasingly divorced from reality, but they can't escape the consequences of playing along with a system that the likes of the Economic Policy Institute and the European Trade Union Institute see as little more than a confidence trick. There is a clear link in the public mind between the services offered by various State organisations and the money paid to their chief executives that doesn't exist in the commercial sector. We are their clients, their customers and in a very broad sense, their employer. We also have access to means when it comes to venting our displeasure – public representatives are only too willing to traduce the chief executives of State agencies and companies on the air, in the Dáil or anywhere else they think someone might hear them. It would be absurd to describe Irish State company chief executives as victims. They know what they signed up to. But they are a soft target and, increasingly, whipping boys for the widening gap in income between the top and bottom strata of society.
Daily Mail
2 days ago
- Business
- Daily Mail
2024's top-earning CEO revealed
New analysis shows which top American executives received the highest pay packages in 2024. Last year's top earner, a man who raked in $165 million, isn't from a big tech company and hasn't generated consistent front-page news. Instead, he leads a Taser manufacturer. Rick Smith, 55, the man who has run Axon Enterprise since 1993, took home the biggest CEO paycheck in America last year. Axon Enterprise is a Scottsdale, Arizona-based company that produced weapons tech for the military, police, and civilians - and has faced some controversy. The company has developed Tasers, body cameras, dash cams, and drones. Axon Enterprise's website claims Smith 'founded the company in a Tucson garage in 1993 after two of his friends were shot and killed.' The two friends were named Todd Bogers and Cory Holmes. However, an investigation by Reuters alleged that Smith didn't have a long-established relationship with the people he dedicated the company to. '[The company] ran a whole advertising campaign based on the murder of my son,' John Bogers, Todd's father, told the outlet. 'They profited off that, and they didn't ask for permission.' Smith has denied Reuter's reporting, with the company calling the reporting 'misguided and inaccurate.' The CEO also wrote a book called The End of Killing, where he advocates against gun control reform and heralds new technology coming out of his industry. His company has also faced internal backlash. In 2022, nine members of the 12-person ethics board abruptly resigned after the company started testing on drone-mounted tasers for use in schools to stop mass shootings. Smith said he believed the drone would have been helpful in past mass shootings, including in Uvalde, Texas, when responders failed to enter the school premises. Axon said at the time it was working on a drone that first responders could operate remotely to fire a Taser at a target about 40 feet away. The project was eventually paused. Smith's earnings compared to his peers Like most CEOs, Smith's earnings were mostly tied to a large stock award, rather than a salary. A stock award is when an executive or worker takes ownership of some of the company's stock, and can benefit if the share price goes higher. Smith received his largest sum in May 2024 after the company exceeded several aggressive performance goals. His compensation took advantage of the company's new program that allows all employees to convert pay into shares. Axon Enterprise's stock started January 2024 at $254 a share, and ended in December at $601. But the stock compensation also carries a lot of risk: it's possible to make no money on the full year. 'I feel better about making a lot if I can also make zero,' he told The Journal. 'For me it creates that startup kind of vibe.' Smith and Axon didn't immediately respond to request for comment on this article. Some of the most recognizable American bosses are surprisingly low in the Wall Street Journal's rankings. Jamie Dimon, the outspoken head of JPMorgan Chase, ranked 23rd among his S&P 500 peers, receiving a little less than $37 million. Dimon's banking peer, Jane Fraser, the head of Citigroup, made $31 million, according to the rankings. Fraser placed 36th. Meta's Mark Zuckerberg landed at number 63 with $27 million — most of which covered security costs. Elon Musk, the world's richest man and leader of five companies — including Tesla, XAI, SpaceX, Neuralink, and The Boring Company — came in last place. The rankings show that Musk made $0 last year as his Tesla executive pay package worked its ways through the court. Courts have been holding up an agreement with Tesla shareholders to give him a $56 billion pay package . That deal would give Musk more than 339 times the amount Smith made in 2024. Last year, only three bosses received nine-figure earnings in 2024. That is the smallest number of over-$100 million payouts for CEOs since 2016.
Daily Mail
2 days ago
- Business
- Daily Mail
Controversial boss is 2024's top-earning CEO... from a company you haven't heard of
New analysis shows which top American executives received the highest pay packages in 2024. Last year's top earner, a man who raked in $165 million, isn't from a big tech company and hasn't generated consistent front-page news. Instead, he leads a Taser manufacturer. Rick Smith, 55, the man who has run Axon Enterprise since 1993, took home the biggest CEO paycheck in America last year. He topped the Wall Street Journal's annual CEO pay rankings, beating out the well-known heads of other companies by a considerable margin. The report showed that Apple's Tim Cook made $74.6 million in 2024, JPMorgan's Jamie Dimon made $37.7 million, and Blackstone's Stephen Schwarzman cashed in $84 million. Smith's pay package was the only one north of $100 million among all S&P 500 chief executives. Axon Enterprise is a Scottsdale, Arizona-based company that produced weapons tech for the military, police, and civilians - and has faced some controversy. The company has developed Tasers, body cameras, dash cams, and drones. Axon Enterprise's website claims Smith 'founded the company in a Tucson garage in 1993 after two of his friends were shot and killed.' The two friends were named Todd Bogers and Cory Holmes. However, an investigation by Reuters alleged that Smith didn't have a long-established relationship with the people he dedicated the company to. '[The company] ran a whole advertising campaign based on the murder of my son,' John Bogers, Todd's father, told the outlet. 'They profited off that, and they didn't ask for permission.' Smith has denied Reuter's reporting, with the company calling the reporting 'misguided and inaccurate.' The CEO also wrote a book called The End of Killing, where he advocates against gun control reform and heralds new technology coming out of his industry. His company has also faced internal backlash. In 2022, nine members of the 12-person ethics board abruptly resigned after the company started testing on drone-mounted tasers for use in schools to stop mass shootings. Smith said he believed the drone would have been helpful in past mass shootings, including in Uvalde, Texas, when responders failed to enter the school premises. Axon said at the time it was working on a drone that first responders could operate remotely to fire a Taser at a target about 40 feet away. The project was eventually paused. Smith's earnings compared to his peers Like most CEOs, Smith's earnings were mostly tied to a large stock award, rather than a salary. A stock award is when an executive or worker takes ownership of some of the company's stock, and can benefit if the share price goes higher. Smith received his largest sum in May 2024 after the company exceeded several aggressive performance goals. Apple's CEO, Tim Cook, earned $74.6 million in 2024, the fourth-highest for top American bosses His compensation took advantage of the company's new program that allows all employees to convert pay into shares. Axon Enterprise's stock started January 2024 at $254 a share, and ended in December at $601. But the stock compensation also carries a lot of risk: it's possible to make no money on the full year. 'I feel better about making a lot if I can also make zero,' he told The Journal. 'For me it creates that startup kind of vibe.' Smith and Axon didn't immediately respond to request for comment on this article. Some of the most recognizable American bosses are surprisingly low in the Wall Street Journal's rankings. Jamie Dimon, the outspoken head of JPMorgan Chase, ranked 23rd among his S&P 500 peers, receiving a little less than $37 million. Jamie Dimon, the outspoken head of JPMorgan Chase, ranked 23rd among his S&P 500 peers, receiving a little less than $37 million Elon Musk's earnings at Tesla technically registered at $0 Dimon's banking peer, Jane Fraser, the head of Citigroup, made $31 million, according to the rankings. Fraser placed 36th. Meta's Mark Zuckerberg landed at number 63 with $27 million — most of which covered security costs. Elon Musk, the world's richest man and leader of five companies — including Tesla, XAI, SpaceX, Neuralink, and The Boring Company — came in last place. The rankings show that Musk made $0 last year as his Tesla executive pay package worked its ways through the court. Courts have been holding up an agreement with Tesla shareholders to give him a $56 billion pay package. That deal would give Musk more than 339 times the amount Smith made in 2024.
Irish Times
2 days ago
- Business
- Irish Times
Eamon Ryan backed higher pay and bonuses to attract best CEOs to commercial State bodies
Former Minister for Transport Eamon Ryan wanted Government departments and agencies to have greater freedom to offer more competitive packages, including performance bonuses and increments, when seeking CEOs for commercial State bodies. He also supported more flexibility on the duration of contracts with an option to extend the time in the role. In a letter to a Government-appointed pay-review group last summer, Mr Ryan suggested a two-tier system for determining chief executives' pay. He proposed that there could be one arrangement for agencies that operated in a highly competitive setting and a different approach for those who provided 'more in way of a public service'. 'Given the sector-specific context and diversity in play, a 'one-size-fits-all approach is not working in attracting talent, particularly when international consideration and comparators are taken into account,' he wrote. READ MORE Mr Ryan said 12 commercial agencies came under his remit as Minister for Transport . 'These agencies have, in the past, had difficulties attracting and retaining CEOs,' he said. The Senior Posts Remuneration Committee had been asked by Government to examine CEO pay in commercial State companies. Its chairperson, Maeve Carton, had asked ministers for submissions. Mr Ryan said fixed-term contracts limited the pool of potential candidates as those appointed had to leave after seven years. 'The overall packages would be considered low in comparison to private sector comparable positions and with the lack of job security at the end of the term, limits the position to quite a small candidate pool,' he stated. 'The fixed single-term contract is constrained by the Protection of Employees (Fixed -Term Work) Act 2003 and I recognise that the committee is not in a position to resolve this issue. However, consideration to amend the Act in relation to CEOs would be a very beneficial outcome moving forward.' He said the Department of Public Expenditure did not allow for increments, cost-of-living rises or public service pay awards. Mr Ryan also said there was no mechanism open to Government departments to work through any disputes, nor were there any levers available 'should it be decided it is in the best interest of all for the CEO to exit the contract early'. He added that the objectives and the level of responsibility associated with the role could change during the term of a CEO due to Government policy evolving. He wrote: 'I would like to see a situation where the job could be re-evaluated should substantial changes to the original specification occur during the term of the contract.' Mr Ryan also said that to compete with private industry, a performance-related award (PRA) element would be welcome. He stated that this could allow flexibility over the course of the term of the CEO in relation to targets and performance. [ 'Like living near a helicopter': Residents fed up with takeaway delivery drones buzzing over their homes Opens in new window ] [ EU warns it could accelerate retaliatory tariffs over US duties Opens in new window ] He wrote that the PRA would 'be awarded on the basis of clear guidelines outlining the expected outputs including targets and objectives with the explicit consent of the line department through the remuneration committee process.' Mr Ryan's letter also stated: 'My department has concerns over the current oversight and governance structures which are fixed and slow to move. An example of this is, for instance, no pay rate reviews since 2011. I would like to see a mechanism where there is, of course, central Government oversight but in line with market conditions and changes in the economic environment.' Last month the Government signalled it would update rules to allow a 'market rate' to be paid to chief executives in commercial State companies but ruled out performance-related bonuses.
