Hock Tan, the CEO of chipmaker Broadcom, received a stock reward of $161 million, making him one of the highest-paid CEOs. The recent surge in Broadcom’s stock price has sparked interest in the possibility of further compensation increases, with its market value currently exceeding $1.3 billion.
Broadcom disclosed that Tan’s share award covers a five-year period, with no additional equity grants or cash bonuses planned. The compensation amounts to approximately $33 million annually over five years, contingent on Tan remaining in his role and meeting specific stock price targets. Tan’s 1 million restricted shares were initially valued at $160.5 million when they vested in October 2022, and Broadcom shares closed at $1,407.84 on Friday.
Tan’s shares are set to consolidate if the share price averages $1,125 for 20 trading days starting in November 2025 and he stays with the company until October 2027. Alongside Tan, other executives such as Cisco Systems’ Charles Robbins and Adobe CEO Shantanu Narayen have seen substantial increases in compensation, raising concerns about executive pay compared to the average employee salary of $59,428.
The issue of high executive salaries has come under increased scrutiny, with a Delaware court recently invalidating Elon Musk’s 2018 compensation package. Critics argue that excessive executive compensation contributes to income inequality and may not align with company performance. CEO pay has soared by 1,460% since 1978, with more than 80% of their income tied to stocks.
The debate over executive compensation continues, with calls for CEOs to be paid less or taxed more to address income inequality issues. The latest trends in executive compensation highlight the growing disparity between CEO salaries and employee wages, prompting discussions about fairness and equity in executive pay structures.
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