BusinessPeople In BusinessFat cat syndrome hits US plc

Fat cat syndrome hits US plc

While UK investor groups continue to campaign against 'fat cat' pay deals for executives in failing companies, new figures from the US show CEOs across the pond are also being handsomely rewarded.

Link: Fat cat pay-offs rise despite failures

A study undertaken by New York-based Conference Board, found the biggest increases in executive pay were in the energy and construction industries, where average pay grew by 22% and 32% respectively.

CEOs of energy companies took home an average wage of $1.6m (£1m), while those in construction took home $1.5m. The biggest earning sector was financial services where the average pay to chief executives was $1.9m.

The results of the survey were for 2001 and so did not take into account the full effect of the collapse of Enron, WorldCom and Adelphia in a heap of accounting scandals or the subsequent introduction of new regulations to improve transparency.

But corporate governance experts were disappointed with the findings, given the decline in the stock market and the general business decline.

‘When earnings and stock prices go down, so should salaries, even those of CEOs,’ said Charles Elson, director of the Center for Corporate Governance.

Charles Peck, a compensation specialist at the Conference Board, told AP, ‘The impact of today’s government regulation will be best seen in next year’s numbers.’

Related Articles

Shortlist announced for British Accountancy Awards 2017

Accounting Firms Shortlist announced for British Accountancy Awards 2017

4m Emma Smith, Managing Editor
Pimlico Plumbers to take employment case appeal to Supreme Court

Legal Pimlico Plumbers to take employment case appeal to Supreme Court

4m Alia Shoaib, Reporter
HMRC appoints new director generals

HMRC HMRC appoints new director generals

5m Alia Shoaib, Reporter
Submit your entry for the British Accountancy Awards!

People Business Submit your entry for the British Accountancy Awards!

6m Emma Smith, Managing Editor
BDO appoints two non-executive directors as advisers to leadership team

Accounting Firms BDO appoints two non-executive directors as advisers to leadership team

6m Emma Smith, Managing Editor
Ex-HMRC chief to join ICAS council

HMRC Ex-HMRC chief to join ICAS council

8m Emma Smith, Managing Editor
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Settlement reached between Margaret May and CIMA

Accounting Standards Settlement reached between Margaret May and CIMA

11m Stephanie Wix, Writer