We can do that? Shareholders reject CEO’s $50m payday

Have you ever asked for a pay rise and been knocked back? That's what happened to Jamie Dimon, the CEO of Investment Bank JP Morgan, and Pat Gelsinger, the CEO of Intel recently. And they aren't alone, it's part of a larger trend where shareholders are pushing back against managements’ sky-high remuneration. What happened in these cases? Well, the world’s largest investment bank was preparing a 201 million US dollar compensation package for six of their top executives, with $50 million for CEO Jamie Dimon. But on Tuesday, only 31% of shareholders voted in favour of the plan. While the vote was non-binding, meaning the bank’s board can choose to ignore the results, they did say recently that they quote “will take into account the outcome of the vote when considering future executive compensation arrangements”.

Today Alec and Sascha ask the question why do CEOs get paid so much? And, are shareholders right to question …  ‘are they worth it?’

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