Pay gaps on the rise among CEOs
Study by Oketz Systems shows that CEOs of companies that employ more than 500 workers saw their salaries increase an average 7.1% this past year, while salaries of CEOs of companies employing fewer than 100 workers stayed nearly the same
The average salary of CEOs of companies that employ more than 500 workers rose 7.1% on average this year, a survey conducted by Oketz Systems indicates.
Oketz surveyed 400 privately held Israeli companies to determine the average salary paid to CEOs in the first half of 2012, compared to their salaries in 2011.
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Companies were divided in four size categories: those that employ up to 30 workers, those that employ up to 100 workers, those that employ 100-500 workers and those that employ more than 500 workers.
CEOs of companies with a workforce of up to 500 earned an average salary of NIS 47,680, a 4.36% increase compared to their pay in 2011. CEOs of companies that employ up to 100 workers earned an average salary of NIS 33,670, an increase of .92% compared to 2011.
Heads of companies that employ up to 30 workers, on the other hand, saw their average salary drop in H1, falling to NIS 26,340 from NIS 27,690.
Accountant Ehud Samori pointed out that the salary of the head of a company owned by one individual was determined by that person, while the salary of a CEO of a jointly-owned company was set by all the owners.
"No doubt, policies of drawing unlimited salaries is very damaging to a company and can bring it into real difficulties in dealing with the challenges that the upcoming period will present to not a few companies in the market," he said.
