11 Highest Paid CEOs In The World

Have you ever wondered which are the highest paid CEOs in the world? Companies in the corporate world are ready to push to the limits to compensate their CEOs, despite of the declining performances, wage gaps and controversies. According to a AFL-CIO, an average S&P 500 company CEO makes 373 times the salary of an average worker. The average salary of a CEO was $19.3 million in 2015, down from $22.6 million in the previous year, according to Equilar.  The rising income gaps in the US and around the world have resulted in serious political repercussions. Social scientists think that the desperation in the languishing working class in the country and hate towards the “filthy rich” was the primary reason behind the victory of Donald Trump in the US elections, as he had promised to “drain the swamp” and empower the masses.

According to a famous study done by the Journal of Management, performance plays a very little role (5%) in the executives’ salary packages. But many experts think that it is imperative for big companies to pay their CEOs well as good compensations motivate them to do their best. Many renowned figures in the corporate sector think that the perks and privileges of CEOs are becoming outrageously hefty. Recently, Pizza Chain Papa John’s founder and CEO, John Schnatter, said that the salaries of executives in the US are “immoral”. Mr. Schnatter also claimed that he has refused a salary raise over the past four years.  Apart from colossal salaries, many CEOs are endowed luxurious perks, access to private jets, attractive retirement plans and extravagant vacations. Economic experts also think that executive pay packages are directly affecting job creation, education opportunities, health and investment sphere in the country.

In a surprising move last year, Portland, Oregon’s city council voted in favor of taxing companies whose CEOs make 100 times the median employee salary. This move makes Portland the first city in the US to impose tax on companies based on their CEOs salaries.  The tax applies to publicly-traded companies that do business in the city.

After the 2008 financial crisis, companies started to compensate their CEO via stock options. This strategy pushes executives to work hard for long term growth and performance of companies. But salaries based on stock options could cost companies dearly. For example, according to a report from Arthur J. Gallagher & Co., 145 million out of $156 million salary package of Discovery Communications CEO David Zaslav came from stock options in 2014. Similarly, Microsoft’s CEO Satya Nadella took home $80 million from stock options in the same period (Nadella’s total salary was $84 million).

Related Reading: Top 10 Multinational Corporations in the US

With this in mind, let’s find out who are the 11 highest paid CEOs in the world.

General Growth Properties Inc (NYSE:GGP)

Sandeep Mathrani, the CEO of the Illinois-based real estate investment trust General Growth Properties Inc (NYSE:GGP), bagged $39.2 million in salary in 2015, thanks to the five-year employment agreement he signed earlier that year. The compensation includes a $1.2 million salary, $3 million bonus, a $10 million stock award and a $25 million stock award under Mathrani’s employment agreement.

Walt Disney Co (NYSE:DIS)

Walt Disney Co (NYSE:DIS) CEO Bob Iger’s salary stood at $43.9 million for the most recent fiscal year, compared to $46.5 million in the prior year. The package includes $2.5 million basic salary, stock awards and options worth $17.2 million and a $20 million incentive plan payment. No wonder it’s on our list of highest paid CEOs in the world, right?

Regeneron Pharmaceuticals Inc (NASDAQ:REGN)

We are continuing our list of highest paid CEOs in the world with Regeneron Pharmaceuticals Inc (NASDAQ:REGN)’s CEO Leonard Schleifer is also one of the 11 highest-paid CEOs in the world. The 63-year old was paid a compensation package valued at $47.5 million in 2015. Even the most famous pharmaceutical companies such as Pfizer, Novartis and Gilead Sciences don’t pay their CEOs that well.

First Data Corp (NYSE:FDC)

First Data Corp (NYSE:FDC) paid its CEO, Frank Bisignano, one of the highest paid CEOs in the world, a $51.6 million salary in 2015, twice what his predecessor receive a year earlier. The New York-based payments technology company compensated Mr. Bisignano with $44 million in stock and option awards, $1.5 million salary and a $5 million cash bonus.

 

Oracle Corporation (NYSE:ORCL)

Oracle Corporation (NYSE:ORCL)’s cofounder and CEO Mark Hurd, next in line on our list of highest paid CEOs in the world,  was paid $53.2 million in 2015, compared to $63.6 million in 2014. Mr. Hurd’s salary saw a 41% increase in pay in the year ended May 31, largely tied to stock compensations.

Viacom, Inc. (NASDAQ:VIAB)

Viacom, Inc. (NASDAQ:VIAB)’s CEO Philippe P. Dauman was paid $54.1 million in 2015, 22% more than his salary a year earlier. Mr. Dauman was fired from Viacom’s board after some legal ruffles with the 93-year old Summer Redstone. In August 2016, Viacom’s board of directors voted to remove Philippe Dauman from his CEO role.

CBS Corporation (NYSE:CBS)

CBS Corporation (NYSE:CBS)’s CEO Les Moonves was paid $56.8 million in 2015, slightly less than what he was paid in 2014 ($57.2). Les Moonves replaced Sumner Redstone as the CEO of the most-watched television network in the US. His salary package included $3.5 million in base salary, stock awards of $25.5 million, stock options of $7.2 million and a $19-million bonus.

Expedia Inc (NASDAQ:EXPE)

Expedia Inc (NASDAQ:EXPE) CEO Dara Khosrowshahi’s compensation for 2015 stood at $94.6 million, making him one of the highest paid CEOs in the world.  Khosrowshahi is also the only CEO in the world who got pay raise of a whopping 881%. His salary is 4,756 times than the average pay of his workers. The Iranian American CEO’s pay package skyrocketed after he signed a deal with Expedia in which he agreed not to leave the company before 2020.

Alphabet Inc (NASDAQ:GOOGL)

Alphabet Inc (NASDAQ:GOOGL)’s Google division CEO Sundar Pichai was paid about $100.5 million in 2015. The package included $100 million stock awards apart from $652,500 base salary. The Indian-born CEO was also awarded $199 million of the company’s stock in 2016. Google said that the high pay package was in recognition of Pichai’s value.

McKesson Corporation (NYSE:MCK)

McKesson Corporation (NYSE:MCK)’s CEO John Hammergren remained the highest paid CEO in the US for years after he had to voluntarily slash his severance package following intense criticism from the company’s employees and shareholders. Mr. Hammergren was paid over $131 million per year by the California-based medical company. It’s also interesting to note that in 2013, a McKesson’s employee was fired for asking for wage increases at a company annual meeting.

Nantkwest Inc (NASDAQ:NK)

Patrick Soon-Shiong, the CEO of relatively unknown California-based biotechnology company Nantkwest Inc (NASDAQ:NK), is also among the 11 highest paid CEOs in the world. He  was paid $147.6 million in 2015, making him the highest paid CEO of the year. The pay package comprised of a $368,301 bonus, $15 million worth of stock awards, and $132.2 million in options award.