1. Royal Caribbean Last year, Royal Caribbean Group CEO made a whopping $10.6 million dollars. The pay...
Question:
1. Royal Caribbean Last year, Royal Caribbean Group CEO made a whopping $10.6 million dollars. The pay disparity was especially egregious because the median annual wage for Royal Caribbean cruise employees was $15,264.00. (Towey, 2023) CEO Royal Caribbean base salary - $1.2 million bonus - $2.3 million long-term incentive equity awards - $7 million shares - $10.76 million (2022) While the median annual wage for cruise employees included tips billed directly to guests.
2. Jamaica Banking Executives The CEO at a commercial bank reported earning JA$207,000, estimated base pay of JA$2.5 million annually. In 2019, the Jamaica Gleaner records that the average pay of the CEO amounted to JA$ 47 million. Average Base Pay - JA$2.5million Bonus - JA$500,000.00 Incentives and share stock options- JA$44 million.
The Gleaner reports that no legislation or policy states that executives are to disclose a CEO's salary. Between 2017 and 2019, banking executives made an estimated 12.2 billion in cash, with average salaries ranging from 44 million to 111 million. According to a source in the Gleaner, company reports seldom delve into the exact compensation paid to CEOs but instead give a lump sum of wages and salaries for all employees on financial reports.
The Economic Research Institute provides three (3) reasons why a CEO's salary may increase excessively,
1. An Executive Compensation Consultant notes that a CEO is underpaid and recommends increasing the salary.
2. The CEO is not underpaid but the company is doing well. A Compensation Consultant is asked to perform an assessment of competitors' executive pay schemes and the CEO's compensation is increased upon recommendation.
3. The company is underperforming and the CEO is not underpaid. An Executive Compensation Consultant recommends an increase in the executive's compensation to prevent turnovers.
Strategic Management An Integrated Approach
ISBN: 978-1111825843
10th edition
Authors: Charles W. L. Hill, Gareth R. Jones