Microsoft was chosen as a company, with Satya Nadella as its CEO. Satya Nadella received $49,858,280 in total salary in his role as Chairman and CEO of Microsoft Corporation in the last year (Presley). It is beneficial to look at Apple and Google when comparing this data with other industry CEOs. As the CEO of Apple, for instance, Tim Cook received a total salary of $98,734,394, while Sundar Pichai, CEO of Google, received only $6 million in total salary at the same time (Denning). This suggests that CEO compensation rates within the same industry vary widely. Nevertheless, the ratio of average employee hourly salaries to CEO pay rates is rising, being currently about 282:1 (Denning). This was caused by different factors, including the pandemic and rising prices.
For its employees and executives, Microsoft offers a variety of programs and benefits. The business provides qualifying employees with Microsoft deferred compensation, allowing them to postpone up to 75% of their base pay and 100% of their bonus (Presley). The Microsoft 401(k) is an additional important retirement plan. Microsoft contributes to retirement savings by matching the 50% contribution up to the IRS annual cap (Presley). Third, another executive retirement plan available is the Microsoft Mega Backdoor Roth. A Roth account has the advantage of allowing for tax-deferred growth and tax-free withdrawals during retirement (Presley). I am currently unable to picture myself earning such a large salary. However, when properly investing in self-development, education, and work experience, it is possible to reach this level in approximately thirty years.
Chevron is one of the major publicly traded firms in the Bay Area. Executives at the Chevron Corporation make an average of $229,642 per year (Denning). An estimate of this figure shows how well-compensated executives are in the majority of the companies in the area. It also highlights the widening pay gap between CEOs and regular workers, which is deteriorating annually due to a variety of variables.
Works Cited
Denning, Stephen. “The digital age is transforming job descriptions, especially for CEOs.” Strategy & Leadership, vol. 1, no.1, 2021, pp. 24-47.
Presley, Irac. “How Does Microsoft Compensation Work?” Cordant, Web.