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Tracking CEO Wealth—Who’s Up, Who’s Down
December 21, 2022
Tracking CEO Wealth—Who’s Up, Who’s Down
An analysis by Farient Advisors of the S&P 500 examined how stock valuations from January 1, 2022, through the market close on December 15, 2022, impacted the value of shares owned by CEOs. With one notable exception, there was a median decline in S&P 500 CEO wealth across sectors. That exception was the S&P 500 Energy sector where CEOs saw the median value of their shares increase by 66% driven by higher share prices.
Farient In the News
How to pay executives in the age of stakeholder capitalism—Financial Times
Investor opposition to high executive pay is not just grumbling. This feature from the Financial Times cites Farient research showing that midway through the 2022 proxy season Say-on-Pay votes failing to garner 70% company support had risen to 9.3%, up from just 3.6% in 2015. Looking at current data (accessible via the Farient Say on Pay Tracker™), the percentage has increased to 10.4% for the entire year. In this article, FT reporter Sarah Murray explores the reasons for investor dissatisfaction with high executive pay—and why some are seeing the linking of compensation to environmental, social, and governance metrics, the topic of the newly published Farient/GECN research Global Trends in Stakeholder Incentives: The Staying Power of ESG, as the answer.
Additional Resources
ESG incentives in executive compensation are becoming more prevalent. For a third consecutive year, research from Farient Advisors in conjunction with the Global Governance and Executive Compensation Group (GECN) finds an increase in the use of stakeholder incentives that demonstrates a commitment to tying executive compensation to ESG goals. The full report, 2023 Global Trends in Stakeholder Incentives: The Staying Power of ESG, provides predictions and recommendations to help boards understand how the world’s largest companies are incorporating ESG metrics into pay plans.
Season’s Greetings
Farient Advisors would like to extend our warmest wishes for a happy and prosperous 2023. We are grateful for your support and partnership. Here’s to a bright future for us all. Happy holidays.
Farient Advisors LLC is an independent premier executive compensation, performance, and corporate governance consultancy. Farient provides a full array of services, linking business strategy to compensation through a tailored, analytically rigorous, and collaborative approach. Farient has locations in Los Angeles, New York, Louisville, and Dallas and works with clients globally through its partnership in the Global Governance and Executive Compensation Group (GECN). Farient is a certified diverse company and is recognized by the Women’s Business Enterprise National Council.
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