July 5, 2022

From Tesla to GE, See How Much CEOs Made in 2020

Most S&P 500 CEOs got raises of about 5% or more as their companies recorded annual shareholder returns of about 8%, according to a Wall Street Journal analysis of data from MyLogIQ.

See below for the CEOs who made the most and the least, as well as those whose companies delivered the best and worst returns for shareholders. Go to the bottom to explore a table with compensation data on more than 400 CEOs.

HIGHEST PAY

Paycom Software Inc.

founder Chad Richison, whose pay package was valued at more than $200 million, was the highest-paid CEO in the Journal’s analysis. Seven CEOs were awarded compensation valued at more than $50 million last year, compared with two in 2019 and three in 2018.

Most of the companies led by this year’s top earners aren’t typically in the pay stratosphere. Several reflect the winners of the pandemic and its economic turmoil, including videogame maker

Activision Blizzard Inc.

and biotech giant

Regeneron Pharmaceuticals Inc.

Most CEO compensation packages are predominantly restricted stock or stock options, as boards continue to emphasize pay structures intended to tie executive pay to the fortunes of shareholders generally. As a result, as stock prices rise, pay packages can swell beyond reported figures: General Electric Co. CEO

Larry Culp

received equity grants in 2020 originally valued at about $57 million that rose to $100 million by year’s end.

GE

said Mr. Culp won’t receive any of his August stock grant until 2024, and then only if performance targets are met. The first of those targets was met in December and a second one was reached in May.

Paycom said the company must make significant market and operational gains for Mr. Richison to realize most of his pay, and noted he won’t be eligible for further equity grants for five years.

Activision Blizzard’s lead independent director,

Robert Morgado,

said Mr. Kotick’s pay was earned over four years and reflects more than 30 years of creating value for shareholders.

Regeneron said CEO

Leonard Schleifer’s

pay jumped because of a front-loaded equity grant meant to replace five years of awards, signaling the board’s confidence in his leadership, and noted he must hold the resulting shares a further three years.

DaVita Inc., a dialysis company, also said its CEO’s pay was meant to replace five years of equity grants. The company said its board set the equity portion of the pay package amid a major strategic shift, and that a sharp run-up in the company’s share price increased its value before shareholders approved it.

LOWEST PAY

Twenty-four S&P 500 CEOs made less than $5 million last year, down from 28 to 33 in recent years.

Twitter Inc.’s

co-founder

Jack Dorsey

made $1.40—a penny for each character in the social-messaging platform’s original 140-character limit—and gas pipeline owner

Kinder Morgan Inc.’s

Steven Kean

made $1.

The lowest-paid of all, at least as far as reported compensation goes, was

Tesla Inc.’s

Elon Musk,

one of the world’s richest executives. He reported zero pay for 2020—even as he raked in stock options worth $32 billion under his landmark 2018 pay package.

Twitter declined to comment. A Kinder Morgan spokeswoman said Mr. Kean reimburses the company for the cost of his health coverage. Tesla didn’t respond to requests for comment.

BEST RETURN

All five of the companies producing the best one-year shareholder returns reported CEO pay packages well below the median. Eleven of the 25 best-performing companies were technology firms—12 if you count Tesla, which is categorized by S&P as an auto maker. Four top-performing companies were in healthcare. Total shareholder return reflects change in share price plus dividends.

Generac Holdings Inc.,

a maker of generators, and

Enphase Energy Inc.,

a solar power company, didn’t respond to requests for comment.

Etsy Inc.,

the online crafts marketplace, and casino operator Penn National Gaming Inc. declined to comment.

WORST RETURN

The worst-performing companies of 2020 tended to be in industries hard-hit by the pandemic, such as cruise lines and energy companies. Fifteen of the 25 worst-performing companies were in the energy sector. One—Hewlett Packard Enterprises Co., with a roughly negative 45% one-year return—was in tech.

Norwegian Cruise Line Holdings Ltd.

said

Frank Del Rio

received modified prior-year awards as a result of the cruise industry’s pandemic shutdown and an earlier federal decision to rescind travel to Cuba, as well as one-time payments tied to a new employment agreement. It called his “annual run-rate” closer to $12.8 million, rather than the $36.4 million reported using the calculations required by securities rules.

Occidental Petroleum Corp.

said the value

Vicki Hollub

can ultimately realize was “significantly impacted” by the company’s performance in last year’s pandemic-related economic downturn.

Carnival Corp.

said

Arnold Donald

gave up 45% of his $1.5 million salary during the year and that 90% of his $13.3 million total reported pay reflected pre-pandemic performance for prior years.

Marathon Oil Corp.

declined to comment beyond its securities filings. Energy company

HollyFrontier Corp.

said

Michael Jennings

became CEO at the beginning of its 2020 fiscal year.

WOMEN CEOS

Twenty-two women ran S&P 500 companies for the full year in 2020, remaining near recent lows. Their median pay was in line with the men, at $13.6 million versus $13.4 million.

Lockheed Martin Corp.’s

Marillyn Hewson

—often among the S&P 500 index’s top-paid women—stepped down during the year, making $28.5 million.

Several women have recently been selected to run S&P 500 firms and didn’t make the analysis, including

Jane Fraser

at

Citigroup Inc.

and Roz Brewer at Walgreens Boots Alliance Inc.

Advanced Micro Devices Inc.,

General Motors Co.

,

Northrop Grumman Corp.

,

Hershey Co.

and

General Dynamics Corp.

declined to comment.

WSJ RANKING OF FULL S&P 500

This sortable table includes compensation figures as reported by S&P 500 companies for CEOs that served in those roles for the full year, along with one year total shareholder returns. Swipe left to see more data for each company.

This sortable table includes compensation figures as reported by S&P 500 companies for CEOs that served in those roles for the full year, along with one-year total shareholder returns. Pay data reflect the value of equity awards at the time of grant, as reported by companies in annual proxy statements or other regulatory filings. Shareholder return reflects stock-price changes and dividends during the company’s fiscal year.

Journal analysis of MyLogIQ data

METHODOLOGY

The Wall Street Journal CEO pay analysis used data from corporate proxy statements filed through May by companies in the S&P 500 stock index with fiscal years ending after June 30, 2020, and collected by MyLogIQ LLC, a provider of public-company data and analysis. Aggregate pay and shareholder-return figures exclude companies that changed CEOs or fiscal-year end dates during the year. Pay data reflect the value of equity awards at the time of grant, as reported by companies in annual proxy statements or other regulatory filings. Total returns reflect stock-price change and dividends, calculated from the month-end closest to the company’s fiscal-year end.

Sources: MyLogIQ LLC (compensation); Institutional Shareholder Services (shareholder return); Standard & Poor’s (industry groups); company filings (2019 pay for select companies); Labor Dept. (median weekly wages)

SHARE YOUR THOUGHTS

What do you think justifies high executive pay? Join the conversation below.

Write to Theo Francis at [email protected] and Inti Pacheco at [email protected]

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Related Posts

How to Ask George Clooney for Advice

May 22, 2021

May 22, 2021

In Personal Board of Directors, top business leaders talk about the people they turn to for advice, and how those...

Nike Posts Highest Quarterly Sales in Its 50-Year History

June 24, 2021

June 24, 2021

Nike swung to a profit of $1.51 billion for the quarter ended May 31. Photo: florence lo/Reuters Updated June 24,...

Amazon Founder Jeff Bezos to Be on Blue Origin’s First Human Space Flight

June 7, 2021

June 7, 2021

Jeff Bezos plans to travel to space next month as one of the first passengers carried by Blue Origin, the...

U.S. Existing-Home Prices Hit Record High in May

June 22, 2021

June 22, 2021

The median home price topped $350,000 for the first time in May as a shortage of properties and low interest...

Internet’s Original Source Code Sold as NFT for $5.4 Million

June 30, 2021

June 30, 2021

The original files of the source code for the World Wide Web were sold Wednesday as a nonfungible token, or...

New York Attorney General Probe of Trump Organization Now a Criminal Investigation

May 19, 2021

May 19, 2021

New York state Attorney General Letitia James at a news conference in August last year. Photo: Kathy Willens/Associated Press Updated...

Ford Expects 40% of Global Vehicle Volume to Be Fully Electric By 2030

May 26, 2021

May 26, 2021

Ford Motor Co. F 8.42% plans to boost spending on electric-vehicle development by billions of dollars beyond previous plans and...

Live-Stream Shopping App Ntwrk Hires Its First Chief Marketing Officer

June 20, 2021

June 20, 2021

The company behind Ntwrk, an app that sells limited-edition merchandise during live-streamed videos often hosted by celebrities, has hired its...

How a Beer Giant Manages Through Waves of Covid Around the World

June 27, 2021

June 27, 2021

In late March, executives at the biggest brewer in the world were working on a project they had code-named EU-phoria....

Amazon Seeks Recusal of FTC Chairwoman Lina Khan in Antitrust Investigations of Company

June 30, 2021

June 30, 2021

WASHINGTON— Amazon.com Inc. filed a request with the Federal Trade Commission seeking the recusal of new Chairwoman Lina Khan from...

Google to Pursue Pentagon Cloud-Computing Contract

November 3, 2021

November 3, 2021

Google is pursuing a massive cloud-computing contract with the Department of Defense, nearly three years after abandoning a similar bid...

Microsoft Launches Windows 11 in a Reboot for the App-Economy Age

June 24, 2021

June 24, 2021

Microsoft Corp. MSFT 0.53% on Thursday unveiled an overhaul of its Windows operating system designed to update the software that...

Canadian Pacific Declines to Increase Offer for Kansas City Southern

May 20, 2021

May 20, 2021

Canadian Pacific Railway Ltd. said Thursday it won’t increase its takeover offer for Kansas City Southern , betting recent setbacks...

Tight Labor Market Returns the Upper Hand to American Workers

June 20, 2021

June 20, 2021

Low-wage workers found something unexpected in the economy’s recovery from the pandemic: leverage. Ballooning job openings in fields requiring minimal...

Verizon Offers Low-Cost Service Commitment to Seal TracFone Deal

July 1, 2021

July 1, 2021

Verizon Communications Inc. told federal regulators it would keep supporting low-cost wireless service for three years if it is allowed...