The salaries of leading listed companies were slightly lower in 2021 compared to the previous year, according to a study by Better Future and Corporate Matters. The market crisis has mainly limited the variable salaries (bonuses) received by the CEOs and CEOs of listed companies.
Of course, the reduction of salaries for senior executives does not concern all companies as there is a large inequality, although medium-sized companies show a tendency to increase salaries as they are at much lower levels than large companies.
The annual earnings survey of listed companies compiled by Better Future in collaboration with the Hellenic Observatory of Corporate Governance (HOCG) in London and Corporate Matters reveals the payroll map for companies on the Athens Stock Exchange based on the companies’ financial results for 2020. published in 2021.
In the 25 large high-capitalization companies, the total remuneration of the CEOs, which includes salary, bonuses and other benefits, is on average 986 thousand euros, reduced compared to the previous year, which amounted to 1.1 million euros. However, half of the CEOs are paid significantly less as the median is at 571 thousand euros while 45% of high-capitalization companies gave variable fees (bonuses) for the financial year 2020.
However, the quarter with those who have the highest salaries (Q3) shows that in the privileged group the CEOs are paid 1.3 million euros while last year the salaries exceeded 1.4 million euros. The salary deduction was made because 45% of the big companies reduced the bonus to the CEOs to 695 thousand from 1 million euros that was the previous year.
In the 20 medium-sized companies, the average remuneration of the CEO is 609 thousand euros, but even in this case the average is increased by a specific group of “high-wage earners” as about half, as shown by the median of salaries, is 387 thousand euros. .
Regarding the remuneration of the Chairmen of the Boards of Directors, the average in large companies is 658 thousand euros with an average of 266 thousand euros, and in the medium capitalization 371 thousand euros with an average of 259 thousand euros. Regarding the remuneration of the non-executive Chairmen of the Boards, the average in large companies is 195 thousand euros, and in the medium capitalization 77 thousand euros.
The average salary for non-executive members of the Board. is 40 thousand euros for large companies and less than 20 thousand euros for medium-sized companies, but they tend to increase them.
The research of Better Future, which systematically monitors the remuneration of executives in the Greek market, points out that 60% of the Presidents are Executive, although the recommendation arising from the law on corporate governance is that the Presidents do not have executive duties.
It also seems that the obligation of companies to have women in a percentage of 25% of the members of the Board of Directors, has paid off as the percentage of women members of the Board of Directors increased from 15% in 2020 to 23% in 2021. Also the percentage of Independent Board Members increased from 38% in 2020 to 42% in 2021.
Commenting on the results of the research, the head of Better Future Chris Admiral, said:
“It seems that the crisis has led to the rationalization of the salaries of the senior executives of the listed companies. “Inequality in executive pay is not justified in all cases by improved results, while the salaries of non-executive presidents remain low.”
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Source From: Capital