A New Landmark in CEO-Worker Pay Ratio Disclosure

Sarah Anderson Institute for Policy Studies

Honeywell has become the first large U.S. corporation to report the ratio between its CEO and median worker compensation, in compliance with a new Securities and Exchange Commision regulationbased on the 2010 Dodd-Frank financial reform legislation.

Honeywell, a Fortune 100 company that concentrates on manufacturing technologies, included the pay ratio information in a preliminary proxy statement posted on the SEC web site after 5 p.m. on Friday, February 16.

Two particularly noteworthy revelations stand out in the Honeywell disclosure.

The first: Honeywell CEO Darius Adamczyk, with only nine months of experience in his chief executive job, made 333 times as much in 2017 as the median Honeywell worker.

Adamczyk replaced long-time Honeywell CEO David Cote in April 2017. To calculate the CEO-worker pay ratio, Honeywell annualized Adamczyk’s compensation, coming up with a total of $16.5 million. The median worker pay at the firm: $50,296.

The second: The Honeywell pay ratio disclosure reveals previously unreleased information about the extent of the company’s offshoring of jobs. Honeywell revealed this information because the SEC pay ratio rule allows companies to exclude some of their foreign-based workers from the calculation of median worker pay. But companies that go this route must make additional disclosures.

Posted In: Allied Approaches

Union Matters

A Fierce Defender of Truth and Classic Opulence

Sam Pizzigati

Sam Pizzigati Editor, Too Much online magazine

Rolls-Royce CEO Torsten Müller-Ötvös sees himself as the custodian of a hallowed brand — and woe be to anyone who dares dispute Rolls supremacy in the universe of ultra luxury. This past March, Müller-Ötvös lit into an Aston Martin exec who had the temerity of suggesting that the traditional Rolls design amounted to an outmoded “ancient Greece.” An “enraged” Müller-Ötvös, Auto News reported, fumed that Aston Martin had “zero clue” about the ultra rich and then accused other carmakers of stealing Rolls-Royce intellectual property. Last summer, Müller-Ötvös rushed to defend the $650,000 price-tag on one Rolls model after a reporter told him that his son wondered why anyone who could afford to “fly to the moon” would choose to buy a Rolls instead. Rolls patrons, the 58-year-old CEO harrumphed back, hold at least $30 million in personal wealth: “They don’t have to choose. They can fly to the moon as well.”

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