CEOs of Activision and EA Named Amongst the "Most Overpaid" in the US

The pay ratios of both CEOs are over 300.

CEOs of Activision and EA Named Amongst the

CEOs of Activision and EA Named Amongst the "Most Overpaid" in the US

As You Sow, a non-profit organisation, has named EA CEO Andrew Wilson and Activision CEO Bobby Kotick as two of the most overpaid CEOs in the US, sitting at rank 98 and 45 respectively. 

EA CEO Andrew Wilson earns the most with earnings of $35,728,764, which is 371 times larger more than that of his average employee. A total of 97 percent of EA's shareholders voted to approve this salary. 

Bobby Kotick, the CEO of Activision, ranks higher on the list despite his lower salary of $28,698,375, which is 306 times higher than his average employee. Earlier this month Activision laid off an estimated 800 employees after the company failed to meet its financial targets.    

In recent years, As You Sow has reported that shareholder approvals of high CEO salaries have decreased. Even so, CEO pay continues to increase in the US. 

The Median pay ratio of CEOs on the S&P 500 list has been reported as 142:1, whereas the average on the As You Sow Most Overpaid CEO list is over 300:1. 

CEOs of Activision and EA Named Amongst the  
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Most Recent Comments

27-02-2019, 15:26:36

CEO compensation is based on supply and demand. Basic value propositions.

A burger flipper working for $10.25 an hour is replaceable. There is always someone else available to work that job. But a CEO who can run a fortune 500 company, and post record breaking profits? Those are rare. As such, the companies pay them richly, lest they leave the company for greener pastures.

Bobby Kotick and Andrew Wilson may be proverbial douche-bags, but they brought their companies record breaking profits. This article marks the basis of their "overpaid" status based on the average wage of the worker; not the actual amount of value they bring to their company.

This is reflected on the fact that the shareholders of these companies continually approve raises to these people with overwhelming support. The value these CEOs bring them far exceeds the value the lowly unknown and unnamed QA tester brings to the company.Quote

27-02-2019, 15:51:18

That's a very old and tired argument that's quickly running out of steam as the area gets more research, these talking heads are often just as likely to be boardroom parasites as they are to be genuinely valuable CEO's with performance of many large companies being dependant on a wide variety of factors & decisions made further down the chain rather than the decisions made by someone too detached from the day to , recently we've seen large companies like Uber ditch their CEO, CFO, CMO & COO in order to bring stability to the company & there's growing research in favour of salaray ratio caps in order to not just improve a companies finances but also performance due to the impacts on worker morale that comes from the workers not having their hours devalued by the pen pushers. CEO pay has grown 90 times faster & higher than worker pay over the last few decades & is a major contributor to the perceived economic & social class divide in many western nations leading to uncertainty in politics across much of the developed world, a divide that has most recently given us Brexit & Trump amognst the rise of far right parties in Europe & more.Quote

27-02-2019, 16:59:01

Yeah, I don't quite buy the whole, 'a great CEO will take a company from rags to riches.' A great selection of staff members from all levels can bring a company from rags to riches as well, but their salary is disproportionately lower. It's almost like there is an arbitrary high salary for a CEO, as if part of an unwritten code of the workplace. Like a footballers salary. It's like the club's all agree in unison without ever saying so that, 'hey, there's money coming in so where do we put it?' And it gets put in the footballers bank accounts. I know that's quite a simplistic and ignorant way of looking at things, but I don't understand some things. I guess I'm just thinking out loud.Quote

27-02-2019, 17:23:26

Who you know is also a very important part. A CEO of a previous company i worked for was the son of a lord, he got his position not from hard work or right time and right place but simply being born entitled. On the flip side of that all the big businesses wanted to do business with him, I mean royalty is the only one step above which he had connections with. being able to influence the law and having people in high places to bail you out if needed is a great way to open doors.
Fully agree on the class system, ivory towers are popping up all over the world. What they need to remember is that the working classes have revolted several times in history and will again, maybe in our lifetimes.Quote

02-03-2019, 13:39:20

If you don't like it, don't work for that company. Don't buy from that company. But you're sorely mistaken if you don't think the fact that he is royalty brings a great deal of value to that company... and the company will pay him richly for that access.

Working classes have revolted in the past because in communist/socialist/fascist societies, there is no way for someone in the working class to excel above that class. But in a capitalistic society, there are many avenues for a worker to become a business creator. Capitalism has brought more people out of poverty in the past 100 years than any economic system in the history of the world.Quote

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