Just read an interesting article and wanted to share this with you guys. Did you know that the top 100 highest paid CEOs in Canada make on average $9.2 million? That is more than 190 times average Canadian income of $47,000. Onex CEO Gerry Schwartz tops the listing with a total pay package of $88 million which means he makes 1872 times more money than typical Canadians.
The listing is compiled by Canadian Centre for Policy Alternatives that tries to draw attention to the unfair compensation gap between the top dog CEOs and the average employees like us. Click the link to see the full report. https://www.policyalternatives.ca/ceo2015. Did you find your CEO here? How does it compare to your last pay stub?
It is obvious that shareholders like us get limited control over top executives’ compensation. Board of directors who are completely dependent on CEOs to run companies will have to pay top dollars because they worry that if they pay less than the norm of extremely imbalanced compensation they won’t be able to attract the best talents.
As a shareholder of some companies through stocks and ETFs, I am confused. A lot of the companies that are listed from the report are listed in Toronto Stock Exchange and are blue chip solid dividend paying companies. Hm… is paying that enormous salary extremely necessary in managing those already solid companies? Suddenly, I remember Warren Buffet saying that he buys companies that can be managed by a ham sandwich. I wonder the taste of $88 million ham sandwich. Must be delicious!