Proxy season stands as a pivotal period for shareholders to scrutinize executive compensation, ensuring alignment with performance and shareholder interests. This annual review offers transparency into how executives are paid, examining components such as salary, bonuses, and stock options. Importantly, it enables shareholders to assess whether executive compensation reflects company performance and creates long-term shareholder value.
For the (just over) 50 companies below, shareholders will be very frustrated with their boards as both 3-year and 1-year TSR (total shareholder return) are negative and yet CEO pay in 2023 increased and is over $10M. At the top of the list, Teladoc Health (TDOC) stock has lost over 92% over the past 3 years, yet their CEO has been paid over $10M in each of the last three years. One of the most egregious pay days comes from Charter Communications (CHTR) where shareholders have lost almost 60% of their holdings’ value over the last three years, yet the board awarded CEO Christopher Winfrey an $89 million payday ($75 million in option awards).
Many have argued, including the Delaware courts, that Elon Musk’s massive $55 billion prospective payday as CEO of Tesla (TSLA) was out of proportion. However, it is relatively easy to argue that he is so singularly important to the success of Tesla that an outsized compensation package of some kind is warranted. In the case of Charter and similar companies, it is hard to see how any particular CEO is worth so much. Certainly an investor in Charter that started with $10,000 three years ago and has only $4,049 remaining will question the value of such an outsized reward.
Quick Reads
- 2024 Say-On-Pay Votes: 25 Companies Where Shareholders Are Unhappy
- Vanguard & Blackrock Should Vote “AGAINST” Directors at These April Shareholder Meetings
- Weekly Activism & Executive Moves Review (April 19)
- Weekly Activism & Executive Moves Review (April 12)
- 2023 Say-On-Pay Winners & Losers
CEO Pay Rises Despite Shareholders Continuing to Lose
| Ticker | Company | 1/3/5 Yr TSR |
CEO Pay | 2023 Pay Change % | 2023 Pay Change $ | Shareholder Loss on $10K | Compensation Consultant | Filing |
|---|---|---|---|---|---|---|---|---|
| TDOC | TELADOC HEALTH INC | -50.6% -92.4% -75.0% |
2023: $11.6M 2022: $10.9M 2021: $11.6M |
6.8% | $0.74M | $-9,243 | Aon | View |
| PENN | PENN ENTERTAINMENT INC | -41.2% -80.6% -18.1% |
2023: $15.5M 2022: $14.1M 2021: $65.9M |
10.4% | $1.47M | $-8,056 | Exequity | View |
| WBD | WARNER BROS DISCOVERY INC | -37.8% -77.9% -71.0% |
2023: $49.7M 2022: $39.3M 2021: $246.6M |
26.5% | $10.41M | $-7,791 | Pay Governance | View |
| U | UNITY SOFTWARE INC | -19.4% -77.3% |
2023: $27.1M 2022: $11.8M 2021: $12.5M |
129.8% | $15.33M | $-7,733 | Semler Brossy | View |
| PYPL | PAYPAL HOLDINGS INC | -13.1% -75.4% -39.7% |
2023: $41.9M 2022: $22.0M 2021: $32.1M |
90.9% | $19.96M | $-7,543 | Compensia | View |
| MPW | MEDICAL PROPERTIES TRUST INC | -37.1% -72.9% -60.0% |
2023: $17.9M 2022: $16.0M 2021: $17.0M |
11.4% | $1.83M | $-7,292 | View | |
| CLVT | CLARIVATE PLC | -21.2% -71.8% -48.7% |
2023: $12.5M 2022: $8.4M |
49.0% | $4.11M | $-7,179 | Pay Governance, Willis Towers Watson | View |
| NWL | NEWELL BRANDS INC | -39.7% -69.7% -37.4% |
2023: $25.5M 2022: $10.3M 2021: $11.4M |
148.0% | $15.24M | $-6,967 | View | |
| ZG | ZILLOW GROUP INC | -2.0% -67.8% 25.7% |
2023: $26.4M 2022: $11.5M 2021: $21.0M |
129.2% | $14.86M | $-6,781 | Aon, Compensia | View |
| ETSY | ETSY INC | -33.0% -67.5% 7.6% |
2023: $16.6M 2022: $16.5M 2021: $40.6M |
0.7% | $0.12M | $-6,750 | Compensia | View |
| CNXC | CONCENTRIX CORP | -45.7% -63.3% |
2023: $10.2M 2022: $8.6M 2021: $15.1M |
18.8% | $1.62M | $-6,329 | Aon, Frederic W. Cook | View |
| CHTR | CHARTER COMMUNICATIONS INC | -20.0% -59.5% -25.6% |
2023: $89.1M 2022: $15.6M 2021: $11.7M |
470.0% | $73.45M | $-5,951 | Semler Brossy | View |
| FL | FOOT LOCKER INC | -44.1% -56.8% -55.9% |
2023: $14.7M 2022: $9.3M |
58.4% | $5.42M | $-5,681 | View | |
| RCM | R1 RCM INC | -25.2% -55.0% 21.0% |
2023: $14.2M 2022: $3.8M |
274.1% | $10.37M | $-5,503 | View | |
| BAX | BAXTER INTERNATIONAL INC | -6.7% -50.3% -40.5% |
2023: $13.8M 2022: $13.6M 2021: $15.6M |
1.5% | $0.20M | $-5,028 | Aon, Meridian | View |
| APTV | APTIV PLC | -33.3% -49.4% -20.9% |
2023: $18.0M 2022: $16.2M 2021: $14.7M |
11.1% | $1.79M | $-4,943 | Meridian, Semler Brossy | View |
| ALGN | ALIGN TECHNOLOGY INC | -12.2% -49.3% 7.3% |
2023: $29.0M 2022: $18.7M 2021: $21.6M |
55.0% | $10.27M | $-4,931 | Aon, Compensia | View |
| WHR | WHIRLPOOL CORP | -20.8% -48.5% -8.1% |
2023: $13.5M 2022: $11.9M 2021: $18.8M |
13.1% | $1.56M | $-4,855 | Frederic W. Cook, Willis Towers Watson | View |
| BURL | BURLINGTON STORES INC | -5.8% -44.1% 12.8% |
2023: $13.9M 2022: $12.8M 2021: $13.9M |
8.1% | $1.03M | $-4,406 | Meridian | View |
| ZBRA | ZEBRA TECHNOLOGIES CORP | -3.9% -43.3% 20.0% |
2023: $11.3M 2022: $4.2M 2021: $4.0M |
166.1% | $7.03M | $-4,325 | Willis Towers Watson | View |
| SWKS | SKYWORKS SOLUTIONS INC | -4.5% -42.3% 23.9% |
2023: $17.3M 2022: $16.7M 2021: $16.2M |
3.6% | $0.59M | $-4,232 | Aon | View |
| CCI | CROWN CASTLE INC | -19.7% -41.1% -5.4% |
2023: $14.7M 2022: $12.5M 2021: $14.6M |
17.9% | $2.23M | $-4,106 | Frederic W. Cook, Meridian | View |
| PODD | INSULET CORP | -47.6% -41.0% 102.9% |
2023: $12.4M 2022: $10.8M |
14.4% | $1.56M | $-4,103 | Pearl Meyer & Partners | View |
| IVZ | INVESCO LTD | -10.0% -35.9% -13.2% |
2023: $17.4M 2022: $15.2M 2021: $12.9M |
14.4% | $2.18M | $-3,591 | View | |
| LBTYA | LIBERTY GLOBAL LTD | -11.0% -33.8% -38.8% |
2023: $44.6M 2022: $19.0M 2021: $62.0M |
134.5% | $25.56M | $-3,384 | Deloitte Consulting, Pearl Meyer & Partners | View |
| YUMC | YUM CHINA HOLDINGS INC | -37.6% -32.7% -9.6% |
2023: $20.3M 2022: $15.9M 2021: $16.6M |
28.0% | $4.44M | $-3,272 | Mercer | View |
| SEE | SEALED AIR CORP | -31.6% -31.3% -25.1% |
2023: $15.7M 2022: $10.4M 2021: $9.7M |
51.8% | $5.37M | $-3,132 | Pearl Meyer & Partners | View |
| TGNA | TEGNA INC | -14.7% -30.7% -3.4% |
2023: $11.0M 2022: $7.3M 2021: $7.0M |
50.8% | $3.69M | $-3,067 | Aon, Meridian, Willis Towers Watson | View |
| BA | BOEING CO | -17.5% -27.8% -53.8% |
2023: $32.8M 2022: $22.6M 2021: $21.2M |
45.0% | $10.17M | $-2,780 | Frederic W. Cook, Pay Governance | View |
| ALB | ALBEMARLE CORP | -33.6% -24.9% 47.6% |
2023: $14.5M 2022: $11.1M 2021: $9.0M |
30.2% | $3.35M | $-2,490 | Farient Advisors | View |
| AMT | AMERICAN TOWER CORP | -11.6% -24.7% 2.1% |
2023: $19.7M 2022: $18.3M 2021: $16.1M |
7.7% | $1.40M | $-2,474 | Meridian | View |
| ES | EVERSOURCE ENERGY | -20.1% -24.2% 0.9% |
2023: $18.9M 2022: $13.0M 2021: $6.5M |
45.7% | $5.93M | $-2,420 | Pay Governance | View |
| LVS | LAS VEGAS SANDS CORP | -26.2% -20.2% -26.3% |
2023: $21.9M 2022: $11.4M 2021: $31.2M |
92.3% | $10.53M | $-2,022 | Korn Ferry | View |
| PPG | PPG INDUSTRIES INC | -6.4% -19.9% 21.4% |
2023: $12.5M 2022: $2.9M 2021: $3.1M |
335.9% | $9.61M | $-1,986 | Aon, Frederic W. Cook, Willis Towers Watson | View |
| BWA | BORGWARNER INC | -21.4% -19.8% -5.7% |
2023: $19.3M 2022: $17.9M 2021: $17.6M |
8.1% | $1.45M | $-1,983 | Pearl Meyer & Partners | View |
| WYNN | WYNN RESORTS LTD | -12.5% -19.7% -26.1% |
2023: $16.2M 2022: $12.2M 2021: $10.7M |
32.1% | $3.92M | $-1,973 | Aon | View |
| SBUX | STARBUCKS CORP | -17.0% -19.3% 28.8% |
2023: $14.6M 2022: $8.8M |
66.1% | $5.81M | $-1,932 | Pay Governance | View |
| CIEN | CIENA CORP | -4.6% -17.0% 15.5% |
2023: $15.4M 2022: $12.0M 2021: $11.5M |
28.4% | $3.41M | $-1,695 | Compensia | View |
| T | AT&T INC | -3.0% -16.4% -6.9% |
2023: $26.5M 2022: $22.9M 2021: $24.8M |
15.4% | $3.53M | $-1,639 | Frederic W. Cook | View |
| REXR | REXFORD INDUSTRIAL REALTY INC | -21.0% -15.0% 35.7% |
2023: $13.8M 2022: $12.6M 2021: $10.2M |
9.5% | $1.20M | $-1,504 | Farient Advisors, Ferguson Partners | View |
| XEL | XCEL ENERGY INC | -18.7% -14.8% 16.7% |
2023: $21.4M 2022: $10.3M 2021: $8.4M |
107.0% | $11.04M | $-1,480 | Meridian | View |
| AGCO | AGCO CORP | -0.6% -9.8% 87.3% |
2023: $17.3M 2022: $13.4M 2021: $11.2M |
29.4% | $3.92M | $-984 | Korn Ferry | View |
| IDXX | IDEXX LABORATORIES INC | -0.4% -9.6% 122.8% |
2023: $11.5M 2022: $9.8M 2021: $9.1M |
17.7% | $1.73M | $-960 | Farient Advisors | View |
| COO | COOPER COMPANIES INC | -4.8% -9.5% 29.1% |
2023: $13.5M 2022: $11.7M 2021: $11.0M |
15.0% | $1.75M | $-948 | Compensia | View |
| ZTS | ZOETIS INC | -14.6% -9.4% 54.7% |
2023: $15.2M 2022: $14.0M 2021: $13.1M |
8.8% | $1.23M | $-940 | Pearl Meyer & Partners, Willis Towers Watson | View |
| ABT | ABBOTT LABORATORIES | -1.7% -8.1% 57.2% |
2023: $23.3M 2022: $21.7M 2021: $24.9M |
7.1% | $1.55M | $-806 | Meridian | View |
| UPS | UNITED PARCEL SERVICE INC | -20.5% -7.6% 54.1% |
2023: $23.4M 2022: $19.0M 2021: $27.6M |
23.3% | $4.42M | $-760 | Frederic W. Cook | View |
| WPC | W P CAREY INC | -16.2% -7.5% 0.4% |
2023: $11.8M 2022: $9.4M 2021: $10.1M |
25.3% | $2.38M | $-747 | Frederic W. Cook | View |
| BERY | BERRY GLOBAL GROUP INC | -1.0% -7.2% 0.8% |
2023: $11.7M 2022: $10.4M 2021: $11.5M |
12.4% | $1.29M | $-721 | Willis Towers Watson | View |
| FHN | FIRST HORIZON CORP | -14.6% -4.0% 25.4% |
2023: $13.0M 2022: $7.2M 2021: $8.4M |
80.2% | $5.81M | $-402 | Meridian | View |
| MSCI | MSCI INC | -17.2% -2.8% 110.0% |
2023: $13.8M 2022: $13.0M 2021: $10.3M |
6.1% | $0.79M | $-275 | Semler Brossy | View |
| CVS | CVS HEALTH CORP | -2.6% -2.2% 51.1% |
2023: $21.6M 2022: $21.3M 2021: $20.4M |
1.4% | $0.30M | $-215 | Korn Ferry | View |
| JNJ | JOHNSON & JOHNSON | -5.3% -1.7% 24.3% |
2023: $28.4M 2022: $13.1M 2021: $13.8M |
116.8% | $15.30M | $-174 | Semler Brossy | View |
| LKQ | LKQ CORP | -24.7% -0.9% 43.3% |
2023: $12.2M 2022: $10.7M 2021: $9.4M |
13.5% | $1.45M | $-94 | Frederic W. Cook | View |