It’s no secret that big tech CEOs receive ample pay, but which tech leaders are providing the best ROI for their companies?
RS Components conducted research on the growth and losses each company has experienced under their current CEO – and it seems that Jeff Bezos is one CEO that’s proved well worth his salary – so what does a top tech CEO earn?
Recent findings from FTSE 100 show that the median pay for a chief executive salary is £3.46 million a year – but this is a far cry from the CEO paychecks of Silicon Valley.
Apple CEO Tim Cook’s compensation rose 22% to $15.7 billion last year, thanks to cash incentives tied to Apple’s sales, whereas Microsoft CEO Satya Nadella received $42.9 million in total pay in the company’s 2019 fiscal year — that’s up about 65% from the year before.
Jeff Bezos has the longest-held position, totalling 23 years as CEO of Amazon, during which time he has grown the value of Amazon from almost nothing to $881 billion. This works out as an average annual added value of $39.1 billion. Despite having a huge impact on the company’s total value, Bezos’ pay was only $2 million in 2018.
Microsoft’s value has increased by $137.5 billion each year, on average, under Nadella’s leadership as CEO, this is $98.4 billion more than the average annual added value of Amazon.
Liu Qiangdong has had the second longest leadership behind Bezos, with 15 years under the CEO title. Regardless of this long tenure, Qiangdong takes the lowest pay with his salary sitting well under $1 million a year.
Ginni Rometty, CEO of IBM, receives a salary of $17.5 million but during her 7 years as CEO the company’s value has plummeted by $57.1 billion, from $175 billion at the start of Rometty’s tenure, to $119 billion at the end of 2018.
Other companies that have seen a decline in their annual growth include Panasonic and Dell. Panasonic’s average annual value declined by $0.2 billion, totalling $1.4 billion over Kazuhiro Tsuga 7 year leadership. Dell’s average annual value declined at a much faster rate of $2.3 billion, totalling a loss of $25.6 billion during Michael S. Dell’s 12 year leadership.
How do other companies compare? Take a look at the graphic to find out.
