Meanwhile at IBM, Oracle and Apple...
[C-suite] *Only* 271? LOSER!!
Hewlett-Packard Enterprise CEO Antonio Neri was compensated to the tune of $17.36 million to run the company during its fiscal 2022, equating to the average annual pay of 271 employees. According to its Annual Report for the year ended 31 October, Neri got a base salary of $1.275 million, up $50,000 year-on-year, option awards …
Considering that many (perhaps most?) of the shareholders are so-called institutional investors, members of the company Board, and even the executives themselves, this is unsurprising. They all benefit from the rigged game.
As an individual shareholder (though not of HPE) I always vote my small batch of shares at every opportunity; I vote against any executive pay rise by default, because I simply believe they're over-compensated, regardless of the job they may be doing. I don't expect it will ever make a real difference, but I do it anyway in hope of maybe someday the camel getting weary of all the straw.
Can tell you from firsthand experience that we "mid-level engineers" (at least in North America) are getting paid substantially more than the average pay listed. That average salary is based on all global employees (about 60,000, a number that is fairly stable, unlike a few other companies in the industry that have made the news recently for mass layoffs).
Antonio started with the company working TAC, and worked his way up. Total comp of $17M is not even particularly outlandish for a CEO of a company this size.
As ridiculous as 271:1 ratio is, I've seen worse. In fact, a little websearching about CEO pay ratios suggests it was approaching 400:1 in 2021 in US.
And even as bad as that is, I'm less troubled by CEO compensation while they are employed, than I am by what they're often paid to go away after The Board and shareholders finally realize (admit) the CEO has botched the job.
I (and probably a few dozen of my associates) could comfortably retire for the rest of our natural lives on what some of these executives are given in "golden parachutes". I daresay if any of the rank and file screwed up our jobs the way certain CEO's have, there's a fair chance we'd be fired outright, at least swept up in the next round of layoffs. We certainly wouldn't be handed multiple millions in payout, accelerated stock option vesting, loan forgiveness, extended medical coverage grace period, etc. And probably with a cushy well-compensated seat on some other Board of Directors down the road as a consolation prize.
Nice work if you can get it, eh.
If they're only paying $ 64,000 for mid-level engineers you could argue that they're very successful!
Shareholders have a say on pay for board members. But since these were effectively captured by investment companies a couple of decades ago, short term interests, skewed by favourable tax treatment, prevail.
> the ratio of the annual total compensation of our CEO to the media annual total compensation of all employees was 271 to 1," HPE says in the 10k filing. This was based on roughly 61,987 individuals employed by the organization on August 21, 2022.
You can just see how this plays out.
We have only one CEO for 61,987 staff. But they are only paid 271 times what those staff get. Bargain!
Although in the 1990s when I worked for a multinational "services" outfit I found out what they charged for my time. I calculated that the income I brought in paid for 6
deadweight administrators who never contributed anything to the bottom line.
I left and went contract. Staying with the last place I had been posted to, for a run of 3-month contracts that lasted 10 years. Sadly, not at the 3-figures per hour my ex-employer charged.
This guy should be unemployed after the way they handled supply chain during COVID. As a multi-billion dollar company HPE should control every aspect of their supply chain. Making excuses, and blaming others, doesn't cut it. Their customers and shareholders deserve better.
want to lower the taxes of the super-rich saying that they need to keep even more of the money they have "earned". It should be no surprise that the number of people below the poverty line is increasing in countries with right-leaning governments around the world. Everyone everywhere is paying for the grossly overinflated renumeration schemes of top parasites in the mega-corporations and financial institutions.
Truss-o-nomics at its finest.
As to what jobs at a place such as HPE pay $60k, and what ones are so hideously below that to offset the boss’ pay bring the average down that far.
Guessing BDMs/AMs, solutions architects and the like would hover around $200k as “senior professionals”. Service desk types based in emerging markets would probably be doing their best to reduce the average pay across the board. Any idea on what one would get?
Icon for effect.