A new study on executive compensation found that chief executives who sent the most service jobs overseas made more money last year than other CEOs.
At the 50 companies that outsourced the most service jobs, average CEO compensation rose 46 percent in 2003. CEOs at the 365 big companies surveyed by Business Week saw an overall 9 percent increase in 2003, according to the study by the Institute for Policy Studies and United for a Fair Economy.
The two groups put out an annual “Executive Excess” report. This year's 11th compensation study said average CEO pay in 2003 was $10.4 million at the 50 companies that outsourced the most jobs. That's compared with $8.1 million for the 365 companies, the Associated Press reported.
The study also pointed out that CEOs of the 70 companies that sponsored the national conventions of both political parties saw their pay increase 49 percent in 2003-far higher than the average increase of 9 percent. The 38 CEOs who personally raised at least $100,000 for either the Bush or Kerry presidential campaigns earned an average of $15.1 million in 2003, 86 percent more than the average large-company CEO, the study said.
In addition, the study said that the pay disparity between CEOs and employees rose in 2003 after two years of narrowing, reaching 301:1 in 2003 from 282:1 the year before.
“The good news is that public pressure is beginning to have an impact. More investors than ever have demanded greater accountability from CEOs at shareholder meetings,” the study said. A number of companies and CEOs, including seven detailed in the report, have voluntarily supported fairer pay plans.