A recent report looking at executive compensation found companies with the most overpaid CEOs had lower returns to shareholders than the S&P average.

The nonprofit shareholder advocacy group As You Sow recently produced its 10th report on the 100 most overpaid CEOs. The report found while the average S&P 500 firm saw annualized returns of 8.5%, companies on the most overpaid list lagged at 7.9 % with the 25 worst seeing only a 6% return.

Rosanna Landis Weaver, director of wage justice and executive pay for As You Sow, said over time, changes in social norms, corporate compensation strategies, the tax code and rules around stock repurchases have contributed to overpaid executives.

"If we look at the period of history when America was a leader in creating solid middle class jobs, but also industry growth, companies plowed back any excess money into the company, into research and development into new initiatives," Weaver pointed out. "What we've had companies saying lately is, 'You know what the best thing I can do with this money is buy my own stock.'"

Since passage of the Dodd Frank bill, shareholders can vote on executive compensation. Weaver pointed out when shareholders vote against excessive CEO pay, corporate boards listen and many have made changes with some reducing executive pay.

In the 1960s, executive pay averaged about 20 times more than their employees. Current data show the number now averages 300 times more, and the report showed the most overpaid executives make thousands of times more than their average worker. Weaver argued no one person added that much value to a company.

"There is no person in the world that added as much value as 1,000 other people," Weaver contended. "There's no question if 1,000 workers disappeared, versus if the CEO disappeared, what would be the outcome."

When As You Sow began its reports 10 years ago, the average compensation of the 10 most overpaid
CEOs was $56 million. This time, the number was $88 million, a 59% increase. While boards have long been compensating executives with stock options, Weaver noted it creates the potential for short term thinking.

"If you attract somebody who's primary interest is seeing how much they can score, that's not good for shareholders long term, because that incentivizes a real short-term focus," asserted. "Maybe you want to cut jobs and cut services, and Wall Street likes that, and the stock price goes up, but you're hollowing out a company in the long term. And I think we've seen too much of that."

She added some shareholder groups are now advocating for changing stock ownership rules for executives so they are required to hold shares for a longer period of time after leaving the company.

This story was produced based on original reporting by Sonali Kolhatkar for Yes! Magazine.


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More than 1,100 caregivers at Portland's Providence St. Vincent Medical Center have voted to unionize, joining the Service Employees International Union Local 49.

Hospital staffers, including certified nursing assistants, cooks, lab assistants, pharmacy techs, environmental workers and patient representatives, will soon begin collective bargaining with management over a new work contract.

Finn McCool, senior food service attendant at Providence St. Vincent Medical Center in Portland, said changes to working conditions in the hospital were a major driver to organize.

"There's a lot that makes St. Vincent a great place to work, but we've also seen just tons of changes over the years around staffing and benefits," McCool explained. "My fellow caregivers really knew that jobs were only going to get harder."

The St. Vincent caregivers will join thousands of other unionized workers at Providence hospitals in Oregon, Washington state and other parts of the country. Providence officials released a statement, recognizing the union and saying they were prepared to work with it toward a new contract.

McCool noted the company made several changes to staffing and work policies without feedback from its employees, with changes to the employees' health care benefits causing a major upheaval.

"It's been a recent change to our health care plan with Aetna switching over, and that was probably a very large reason why a lot of us decided to vote yes," McCool pointed out. "We had our own internal health care system. We changed to a different thing. Co-pays changed. Things were definitely a lot harder with increased deductibles."

McCool stressed political uncertainty, particularly in the government's health care policies, was also a significant concern.

"We're seeing a lot of changes going on with the government with cuts, especially right now," McCool observed. "What threatens us is cuts to Medicare and Medicaid. Our CEO said, 'These cuts are threatening the hospital.'"

The multistate Providence Health System announced it will close the maternity center at one of its Montana hospitals in October.

Opponents are hoping the corporation will reverse its decision at negotiations starting next week. The Family Maternity Center at Missoula's Providence St. Patrick Hospital has delivered about 450 babies each year over the last several, and serves many people from the surrounding small towns.

Robin Haux, labor program director for the Montana Nurses Association, said the layoff notification came as a big surprise and will affect moms and babies, nurses and Missoula's other hospital.

"Not only were the nurses provided just a four-month turnaround, so was the community, so was Community Medical Center," Haux explained. "This has triggered a pretty large scrambling of trying to get prepared."

The cut comes as U.S. lawmakers close in on the "One Big Beautiful Bill Act," the Republican budget megabill proposing cuts to Medicaid which could close rural hospitals. Providence said the closure is due to "declining birth volumes" and "workforce shortages."

Megan Carey, labor and delivery nurse in the Family Maternity Center at Providence St. Patrick Hospital, said no one from the Family Maternity Center was included in the decision.

"We were told there was a discernment team as well as external stakeholders," Carey pointed out. "It's just really disappointing that administration could not look inward to better go about this process."

Carey added Providence sent what she calls an "unsettling" message informing nurses they could apply to work in other departments at St. Patrick Hospital but there would not be enough jobs for them all.


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As more women enter the construction industry, a group in Philadelphia is working to support them and advance diversity amid political challenges to DEI programs.

The U.S. Bureau of Labor Statistics reports a nearly 45% increase in women in construction over the past decade.

Amy Novak, president of the Philadelphia chapter of Professional Women in Construction, said recent federal actions against DEI initiatives have prompted the relaunch of their empowering committee, which focuses on development and educational sessions.

"We choose to focus on empowering women to solve issues, be a part of the resolution of issues," Novak explained. "And also to feel supported, to be an advocate for diversity, equity and inclusion programs."

The Biden administration implemented widespread diversity, equity and inclusion initiatives across nearly all areas of the federal government from military operations to airline safety policies. Critics argued the programs amount to unlawful and unethical discrimination.

Novak said a recent Professional Women in Construction report showed strong support for diversity, equity and inclusion among those involved with the group. She added her group is committed to growing the talent pipeline in construction, architecture and engineering from trades to professional roles by expanding partnerships that boost early STEM interest, starting in middle school.

"We have our Connecting Committee, which goes out and regularly interacts at college campuses," Novak pointed out. "Not just to women who are in engineering, architecture, construction majors, but those majors as a whole, educating them about different careers within construction."

Novak stressed the goal is to expand into high schools next year, to reach students as they start making career decisions. She added the group's Student Recognition Program, launched in 2020, highlights young women pursuing careers in STEM and construction, aiming to inspire younger girls and strengthen the future talent pipeline.


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