Another perquisite of a big time CEO: receive dividends on stock you don’t own. The Corporate Library estimates that 90% of US publicly traded companies pay their CEOs dividends on restricted stock, that is stock that has not yet been vested in accounts of these CEOs, and, therefore, not owned by them. For example, the CEO of Altria received $1,500,000 in dividends last year on his restricted stock.
Another reason why the average CEO of a public company receives 160 times the pay of the average Joe working for that company.
I find this unbelievable and have to wonder how a director could feel he is exercising his responsibilities to the shareholders.
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