How Much Does A CEO Earn- Corporate Knowledge
Yes, Corporate earning is the mysterious term that only a few people know how much the company earns, how much company CEO Earn and how much company employees are getting?
What are Corporate Earnings
Corporate earnings consist of how much money a company or corporation has made during a certain period of time. So, It also includes the lost during this time frame as well.
In terms of Calculations, The corporate earnings are calculated quarterly in order to see that how a business is performing throughout the year, while Some are calculated and reported on a yearly basis.
Now sticking to the topic, First, understand who is CEO:
Who is CEO?
A chief executive officer (CEO) is the highest-ranking executive in a company, CEO is responsible for making major corporate decisions, managing the overall operations and resources of a company, and acting as the main point of communication between the board of directors and corporate operations.
Also, The CEO may be company founder and/or chief stockholder and owner in small organizations.
How Much CEO Earn
Now it comes to the CEO earnings, well it is clear that CEO Earn more money than their employees, but how much more are they really taking in?
According to the U.S Securities And Exchange Commision, A final rule that requires a public company to disclose the ratio of the compensation of its chief executive officer (CEO) to the median compensation of its employees in order to provide even more transparency to pay at some of the world’s biggest companies, Which started in 2017.
So, here is the average CEO pay(CEO Earn) was $13.8 million per year and the worker pay was about $77,800 and the average ratio of CEO pay to the worker pay was 204. It means on average, CEO earns 204 times more than what his or her employees earn.
Note* This is not exact earning or estimated earning, there are some CEO who earn even more and some CEO Earn much less.
Moreover, Reports said that the CEO compensation has fallen slightly in the past few years, it has increased by more than 930% since 1978. CEO pay has grown faster than the stock market or the wages of the top 0.1 percent.
How to calculate the Ratio
The ratio is calculated by dividing the CEO compensation by the pay of the median employee, meaning half of a company’s workers make more and half make less.
Now, Let’s have an eye on the few companies where the ratio of CEO pay vs. employee pay is highest, along with the 10 companies where it’s lowest:
Highest Paid CEO In The World, 2018
Let’s have an eye on the Highest Paid CEO In The World, 2018:
|Highest Paid CEO|
1. David Zaslav, Discovery Communications – $156.1 million
2. Sundar Pichai – US$150 million
3. Michael Fries, Liberty Global – $111.9 million
4. Gregory Maffei, Liberty Media & Liberty Interactive – $73.8 million
5. Mario Gabelli, Gamco Investors – $88.5 million
6. Satya Nadella, Microsoft – US$18.2 million
7. Nick Woodman, GoPro – $77.4 million
8. Larry Ellison, Oracle – $55 million
9. Steve Mollenkopf, Qualcomm – $60.7 million
10. Tim Cook: Apple-$10.28 Million
David M. Zaslav is the Chief executive officers(CEO) and president of Discovery communication.
He develops and launches MSNBC, CNBC and Currently, he is one of the most successful, prominent and highest paid CEO or highest CEO Earn in the world.
Sunder Pichai, is an Indian American business executive and currently serving Google Inc as a Chief executive officer(CEO). He was announced as the CEO of Google on 10th August 2015. Sunder Pichai is also one of the highest paid and successful CEO in the world.
CCs, Chief executive officer(CEO) and vice president of Liberty Global. In June 2005 he was appointed CEO and president of Liberty Global while he is one of the highest paid and successful CEO in the world.
Gregory Maffei, Chief executive officer(CEO) and president of Liberty Media Corporation. Currently, he is one of the highest paid and successful CEO in the world.
Mario Joseph Gabelli is an American investment advisor, stock investor and financial analyst. He is the Chief executive officer(CEO) and founder chairman of Gabelli Asset management company Investors.
Satya Narayana Nadella is Indian American business executive. On 4th February 2014, he has appointed the Chief executive officer(CEO) of world largest company Microsoft.
Nicholas D. is known as Nick Woodman. He is an American philanthropist, businessman and the Chief executive officer(CEO), founder of GoPro while on the other hand he is highest paid and successful CEO in the world as well.
Lawrence Joseph is known as Larry Ellison, is an American entrepreneur, businessman and philanthropist. He is the co-founder of world famous company Oracle. He is the chief technology officer and executive chairman of Oracle while successful and highest paid Chief executive officer(CEO) in the world. He is the 7th wealthiest person in the world, according to Forbes.
Steve, Chief executive officer(CEO) of Qualcomm that is American multinational telecommunications equipment and Semiconductor Corporation and highest paid CEO.
Timothy Donald is the complete name of Tim Cook, He is an American developer, business executive and industrial engineer. Tim Cook is the seventh and current Chief executive officer(CEO) of Apple Inc and the highest paid and successful Chief executive officer in the world.
Now, You might be thinking that this is the reason for starting the startups (typically a newly emerged business that aims to meet a marketplace need by developing a working business model around a product, service, process or a platform).
Yes, It is true but there are some more factors that is the reason behind this like:
- You will get the time for your life.
- You have the opportunity to create something new or innovative.
- You get the chance to explore your knowledge in other fields.
- You can build the connection with the niche etc.