These Companies Have the Biggest CEO-Worker Pay Gaps

<> on July 7, 2015 in Sun Valley, Idaho.
Scott Olson—2015 Getty Images Discovery Communications CEO David M. Zaslav.

Glassdoor offers sneak peek into future pay disclosures

Glassdoor released a report Tuesday that shows the average CEO earns around 204 times what the company’s median worker receives.

The SEC adopted a new rule this month that will require publicly traded companies to disclose the ratio of CEO pay to median worker pay. Glassdoor has been ahead of the curve on this pay transparency mission, collecting voluntary and anonymous salary reports from employees since 2008. Glassdoor used the data to compile a report that shows what the ratios might look like once the SEC rule goes into effect in January 2017.

The highest CEO-worker pay ratio was found at Discovery Communications, where CEO David M. Zaslav makes 1,951 times more than his median workers. Zaslav took home $156 million in 2014, while median pay at the media company was $80,000.

Chipotle Mexican Grill came second on the list, with a pay ratio of 1,522, while CVS Health was third with a ratio of 1,192.

Microsoft’s CEO-worker pay ratio of 615 was the highest of the companies Glassdoor measured in the technology sector. Google’s ratio was 0, as CEO Larry Page receives a $1 annual salary. CEOs such as Page often get the vast majority of their income from their large share holdings.

MONEY stocks

4 Unfortunate Financial Ironies

Caroline Purser—Getty Images

Success attracts money, but attracting money ensures less success.

“Irony is just honesty with the volume cranked up,” George Saunders once said. Here are my favorite financial ironies.

1. Lower trading costs make it more tempting to trade, which increases costs.
The average stock transaction cost in 1970 was 1.2%. Want to buy $10,000 of stock? It’ll cost you $120. Thanks.

Fees have fallen through the floor over the years, and now round to free at most online brokerages.

But I doubt lower trading fees have helped investors. Just the opposite: They’ve removed all barriers to stupid.

The evidence is overwhelming that the more you trade, the worse you’ll do. That’s because most trades are expressions of your own delusions and biases.

Just as gasoline taxes promote efficient cars, trading fees promote efficient behavior by putting a financial burden in between you and bad decisions. They make you think before acting. Over time, that might save you far more than the incremental gain of lower trading fees. If you think a $120 trading commission was expensive, calculate the cost of day trading your 401(k). There’s no comparison.

2. Your prime investing years are in your teens and 20s, but your prime earning years are in your 40s and 50s.
Compound interest grows exponentially, but market returns are random and unforgiving in the short run.

So here’s what happens: Time is on your side when you’re young, but you have no money to invest. When you’re old and have money to invest, the most powerful years of compounding are long gone and you’re left fighting the psychotic whims of short-term market returns as retirement approaches.

This is why so many people think the market is a casino. Since they don’t invest in earnest until they’re nearing retirement, they don’t have enough time to let the market work, and they truly are left gambling on short-term returns.

The solution is to teach younger generations how powerful saving even a few dollars can be. We’ve made progress here. Thanks to auto-enrolment into 401(k)s, younger workers are saving for retirement at rates their parents couldn’t fathom.

But the fact remains: The market is made for people with 30-50 years in front of them, and that’s always going to be the segment of the population with the least amount of money to invest.

3. Investing gets more expensive the richer you become.
A rich person pays the same price for a pair of shoes as a poor person. But the rich person will pay way more for investment advice than someone with less money, even if they’re receiving the same product.

Nearly all financial fees are processed as a percentage of assets. Say a mutual fund charges 1% a year. Someone who invests $10,000 will pay $100 a year. Someone who invests $100,000 will pay $1,000 a year. But both are receiving the same service: The same set of stock picks from the same money manager who puts in the same amount of effort regardless of how much money you have.

The money manager has his own set of expenses that scale with assets — custodial fees and transaction fees — which is why this fee system is as ingrained as it is. Everyone in the business has signed onto scaling fees with assets, which makes it hard for anyone to break away. But the result is that the richer you become, the more expensive investing becomes. It’s one of the few industries with negative economies of scale.

4. Success attracts money, but attracting money ensures less success.
If a money manager clobbers the market for a few years, investors will reward them with billions of dollars to invest.

But opportunity is a scarce resource. It’s not something even the smartest investor finds day after day. So new money often heads into the only thing left on the manager’s list: Overpriced assets or sub-par ideas. Disappointment isn’t far behind.

Money doesn’t chase opportunity, it chases past performance. The irony is that in a cyclical world, high past performance is often a harbinger of a future slump. But this is so counterintuitive to everything our brain wants to believe that we keep repeating the same chasing-the-shiny-things mistake over and over again.

Some money managers close down their funds to new investors to keep a balance between money and opportunity. But they’re rare. Bill Gross, Bill Miller, Ken Heebner, and John Hussman have all been hit by the curse of success, with a career cycle that will look something like this:

  • Manager has a winning streak.
  • Investors pile in, hoping winning streak will continue.
  • Manager puts new investor money into sub-par ideas. Returns drop.
  • Investors pull money out.
  • Manager finds new opportunity.
  • Few investors are left to enjoy it.
  • Manager has a winning streak.

Many investors repeat this process until broke. The smarter ones realize that everything is cyclical and chasing past performance is the fastest road to misery.

More From Motley Fool:

MONEY Careers

The Career Trick That Could Make You Richer

It could make you richer.

Negotiation before starting a job is key. “Once you get inside your workplace,” says author Kerry Hannon, “getting those raises gets harder and harder.” Raises tend to be incremental, around 3% this year, but if you change companies, you could negotiate your salary much higher than that. A higher starting salary has repercussions down the line, like saving more for retirement. Do some reconnaissance about the company’s salary ranges if you can. And remember: “Any time someone hires you, it’s not about you; it’s about them,” says Hannon. “It’s what you can do for them.”

More: The 10 Commandments of Salary Negotiation

MONEY Careers & Workplace

The Surprising Reason Your Salary Isn’t Growing

Paid in peanuts
RedBarnStudio—Getty Images

A new compensation trend could be hurting workers.

Wage growth hasn’t been this slow since 1982. In the second quarter, raises and salaries ticked up a minuscule 0.2% percent, according to Labor Department data released Friday. For private-sector workers, in fact, wage growth hasn’t been this low in the entire 35 years the Labor Department has been tracking it.

The bottom line is that even as companies have been hiring more, they’ve been able to hold the line on pay.

The likely culprit, say experts, is the continued adoption of one-time bonuses given in lieu of raises. “The raise has gone the way of the gold watch,” Gary Burnison, CEO of executive recruitment and talent management company Korn Ferry, tells the Washington Post.

‘Variable Pay’ Hits Record

What has been a frustrating trend for workers first attracted widespread attention about a year ago, after a report by HR consulting firm Aon Hewitt found that a record amount — 13% — of employee payroll costs were going to what’s termed “variable pay,” a category that covers bonuses and related performance-based payments. (In 1988, when the company started tracking it, variable pay made up only about 4% of payroll costs.)

“Performance-related pay, of which bonuses are an example, will become more and more prevalent,” predicts Iwan Barankay, a management professor at University of Pennsylvania’s Wharton School who has addressed the wage vs. bonus issue in the past.

Read next: How to Tell If Now Is a Good Time to Ask for a Raise

Companies like giving bonuses instead of raises because it requires less commitment on their part, and because they can tie payouts to company or departmental performance metrics, explained Aon Hewitt compensation, strategy and market development leader Ken Abosch in an article published by the Society for Human Resource Management.

“They feel like they need to be careful about adding to their fixed costs,” he says. “This is one of the main reasons variable pay programs are so attractive.” Incurring a one-time expense — one the company won’t have to pay again if certain performance targets aren’t met — is a better deal for them than raising wages across the board, then having to cut employees or pay if business slows down.

“The more compensation you can give in other forms, the more nimble you can be in a recession,” Linda Barrington, executive director of Cornell University’s Institute for Compensation Studies, tells the New York Times.

Workers Lose Out

But even when bonuses are paid out, performance-based pay can be a bum deal for workers. Your base salary is an important factor in calculating everything from how much interest you’ll pay on a loan to how much Social Security you’ll earn when you retire. For young adults, a lower starting salary can potentially put a drag on decades of future earnings.

A bonus-heavy pay structure also divides a workforce more sharply into winners and losers, Barankay notes. “Unfortunately, not all employees benefit from bonuses equally,” he says. “High performers can still command high fixed wages since — should an employer not offer them a raise — they can credibly threaten to get another job elsewhere.”

For everyone else, though, the picture looks a lot less rosy. “Low performers are less lucky as they [can] struggle to get a good alternative job offer and are stuck in a system where bonuses are hard to get,” he adds.

“The consequence is a situation where wage inequality will increase in the workplace,” Barankay says.

Read next: Here’s How Much The Nurse Next Door Makes

TIME Gaming

You Can Make $50,000 a Year as a Video Game Coach

ColorBlind Images—Getty Images

They can make as much as a minor league baseball coach

As the world of e-sports heats up, and players battle for prize money that can reach into the millions, the activity has given rise to a field of coaches who want to cash in on training these keyboard-using champions.

An e-sport coach can make anywhere from $30,000 to $50,000 a year, which is pretty much in line with a minor league baseball coach, according to The Wall Street Journal.

One assistant coach of a group called Team Liquid, which competes in the “League of Legends” tournaments, told the paper he makes in the mid-$30,000s annually plus a performance bonus and health insurance. That’s not too shabby when you consider that the annual income for all coaches and scouts in 2012 was $28,360, according to data from the U.S. Bureau of Labor Statistics.

Coaches get paid good money primarily because their players have the potential to pull in large payouts, ranging between $35,000 and $120,000 a year depending on how good they are, and which games they play. The annual income doesn’t include the additional team winnings and benefits.

Read more about the world of e-sports at The Wall Street Journal.


10 Liberal Arts Schools Where Grads Earn the Most

You don't have to be a business major or an engineer to make a good salary right out of college.

We all know the tired cliché of the liberal arts graduate: the starving artist, the unemployed classics major, the English graduate who’s waiting tables. They’re exaggerations and stereotypes, to be sure. And yet, employment and salary data consistently show holders of liberal arts degrees toward the bottom of the pay scale for college graduates.

Supporters of liberal arts colleges argue that salaries don’t tell the whole story. The liberal arts teach students skills that will benefit them in a variety of careers, such as how to reason and write, they say. Plus, a report last year found that liberal arts majors tend to close the salary gap after several years in the workforce. And if nothing else, the liberal arts pay off in an intellectual way, making the “inside of your head an interesting place to spend the rest of your life,” as one former college president puts it.

But what if you don’t want to choose one or the other—an interesting internal life or a comfortable paycheck? Here are the liberal arts schools in MONEY’s Best Colleges rankings where graduates report the highest average salaries within five years of graduation, according to Payscale.com.

  • 10. Colgate University

    Ashlee Eve&mdash— Colgate University

    Average early career earnings: $52,900

    MONEY Best Colleges rank: 34

    Location: Hamilton, N.Y.

    Read more about Colgate.

  • 9. Virginia Military Institute

    Kevin Remington—Virginia Military Institute

    Average early career earnings: $53,400

    MONEY Best Colleges rank: 48

    Location: Lexington, Va.

    Read more about VMI.

  • 8. Washington and Lee University

    courtesy of Washington & LeeWashington and Lee University

    Average early career earnings: $53,700

    MONEY Best Colleges rank: 24

    Location: Lexington, Va.

    Read more about W&L.

  • 7. Hamilton College

    Hamilton College
    Bob Handelman

    Average early career earnings: $54,500

    MONEY Best Colleges rank: 41

    Location: Clinton, N.Y.

    Read more about Hamilton.

  • 6. Hampden-Sydney College

    courtesy Hampden-Sydney College

    Average early career earnings: $55,300

    MONEY Best Colleges rank: 158

    Location: Hampden-Sydney, Va.

    Read more about Hampden-Sydney.

  • 5. Claremont McKenna College

    Anais & Dax—courtesy of Claremont McKenna College

    Average early career earnings: $55,500

    MONEY Best Colleges rank: 19

    Location: Claremont, Calif.

    Read more about CMC.

  • 4. Amherst College

    courtesy OfficeAmherst College

    Average early career earnings: $55,700

    MONEY Best Colleges rank: 9

    Location: Amherst, Mass.

    Read more about Amherst.

  • 3. Bucknell University

    Laurie JacksonBucknell University

    Average early career earnings: $56,000

    MONEY Best Colleges rank: 37

    Location: Lewisburg, Pa.

    Read more about Bucknell.

  • 2. Lafayette College

    Chuck ZovkoLafayette College

    Average early career earnings: $56,800

    MONEY Best Colleges rank: 54

    Location: Easton, Pa.

    Read more about Lafayette.

  • 1. Harvey Mudd College

    Edward CarreonHarvey Mudd College

    Average early career earnings: $76,400

    MONEY Best Colleges rank: 6

    Location: Claremont, Calif.

    Read more about Harvey Mudd.

TIME Careers & Workplace

10 Questions to Ask When Negotiating Your Starting Salary

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Would you be prepared to offer a signing bonus?

It would be naïve to think that an employer will automatically offer you the best possible salary as their first offer. Sure, on some occasions a very lucky candidate may find themselves with a salary offer they can’t refuse, but this is a rare thing.

Studies show that most employers will actually leave some bargaining room in their initial salary offers, as they fully expect you to ask for more. If you don’t negotiate, you are leaving money on the table.

If you move passively through the salary negotiation, there is a good chance you could end up working alongside coworkers who have bargained better and harder — coworkers who are earning $5,000 a year more than you. Ouch.

All of this is to say that it usually makes sense to resist the first salary offer and negotiate instead. One of the most effective ways to negotiate fairly is by asking appropriate exploratory and clarifying questions that gently persuade the employer to meet your salary expectations. To help you, here are ten such questions to ask when negotiating your salary:

1. Are you open to a salary discussion?

I like this more than the classic query, “Is this salary up for negotiation?” This version is a little less direct and confrontational; upon hearing it, the employer may be less defensive and guarded, more open. Also, this question sets a more relaxed tone for what will be a sensitive conversation.

2. Is there any wiggle room in the current salary?

You can either lead with this question or use it to follow up if you get a positive response to question No. 1. What’s good about this question is that it may soften the employer’s stance; it implies you are looking for something small – even though you might not be.

3. When would my pay be reviewed next?

If thee employer can’t give you a clear and precise picture of when your next pay review or raise might be, there’s a chance you could be stuck with your starting salary for some time. In light of this uncertainty about your next raise, you might be justified in wanting to drive a harder bargain with your starting salary.

4. What was the average annual percentage raise last year?

The employer might not be prepared to divulge this figure, but it’s a bonus if the employer is. This figure can give you an idea of the kind of annual raise you might expect. If it’s healthy, you might not need to bargain quite so hard, as a good pay raise could be right around the corner; if it’s not very healthy, you may need to negotiate harder.

5. What percentage raise did your highest performers enjoy last year?

Asking this question shows the employer that you associate yourself with winners, and it can also give you an idea of how high performance and success are rewarded at the company. If there’s a strong positive link between performance and reward, you might settle for a lower starting salary, knowing that once you get in and prove yourself, your salary will be boosted.

6. Is there a bonus scheme? If so, what was the average payout for someone of my grade last year?

Don’t be taken in by a delicious-sounding potential bonus of 20 percent of salary or more. Concern yourself with the reality: ask for the average actual bonus payout for people in your pay grade last year. If the realities of bonuses turn out to be much lower than the advertised potential of bonuses, you may need to do some harder bargaining.

7. Would you be prepared to build in a six-month raise based on my ability to meet certain performance goals?

Save this question for situations where the employer is really not prepared to budge on salary. In such a case, the employer may be prepared to offer a deferred raise subject to future performance as an alternative to a higher starting salary. A deferred raise is not as good as a higher starting salary, but it’s better than nothing.

8. Would you be prepared to increase my bonus pot as a way to increase my total compensation?

This can be a backdoor approach to a higher salary. Employers may be more likely to give away bonus potential than actual salary, because bonuses are linked to your performance. Employers see it as a win-win situation: you earn more pay by delivering better results.

9. Would you be prepared to offer a signing bonus?

This is useful in situations where the company simply can’t afford to pay you more because doing so would bust its pay structure. The employer can give you a one-time golden handshake for signing on the dotted line without disrupting the internal pay structure.

10. Would you be prepared to offer something else in lieu of a higher starting salary? (E.g., higher benefit contributions, more PTO, flexible work options, etc.)

If the employer can’t offer you a higher starting salary, you may still be able to negotiate better benefits. When you have them on the ropes, they may be more likely to make concessions in this area.

Just to be clear, you don’t need to ask all of these questions when negotiating your salary. See this list as more of a toolkit: it’s about picking and choosing the right questions to help you achieve your objective of a higher starting salary.

This article originally appeared on Recruiter.com

More from Recruiter.com:

MONEY consumer psychology

10 Reasons You’re Not Rich Yet

H. Armstrong Roberts—Getty Images

#5: You’d rather complain than commit.

As a financial advisor, I have spent many years helping other people overcome financial stumbling blocks so they can become rich. Ironically, the one person I have had the most trouble helping is myself.

Being “rich” can mean different things to different people, but I believe it means having the financial freedom to achieve your goals and live the life you want. I am great at giving advice; I am not always so great at taking my own advice (know anyone like that?). So, when it came to helping my clients understand why they weren’t rich yet, the easy part was explaining the culprits, because I was all too familiar with most of them.

Regardless of our upbringing, education, profession or lifestyle, most of us are not where we want to be financially and our reasons are probably more similar than different. The good news is that it is never too late to become rich if you, like me, are ready to own up to the reasons you’re not and do something about it.

Want to know why you aren’t rich yet? Keep reading.

#1: You spend money like you’re already rich.

Sure, it feels good to buy expensive things, whether it’s a luxury car, designer clothes, a big house in the burbs, or a tropical vacation. Even if you don’t necessarily buy pricey items, if you consistently buy stuff you really don’t need, it still adds up fast ($300 trip to Target for toothpaste? AHEM). But the shopping high only lasts until the guilt and regret set in or the credit card bill arrives. Most of us are guilty of living beyond our means and using credit cards more than we should. The problem is that as long as we continue to spend more than we have, we can’t start building wealth. Chronic overspending and high-interest, revolving credit card debt are your worst enemies when it comes to financial success. Spend like you’re poor and you are much more likely to become rich.

#2: You don’t have a plan.

Without clearly defined short, mid and long-term goals, becoming rich will just seem like an unattainable fantasy. And that turns into your go-to excuse for why you shouldn’t bother saving or stop overspending. As we say in the financial industry: those who fail to plan, plan to fail. Creating a financial plan may seem overwhelming or intimidating, but it doesn’t have to be. Whether you do-it-yourself or decide to work with a financial professional, the process simply starts with prioritizing your goals and writing them down. Put that list where you can see it on a regular basis. Visual reminders go a long way in helping us stay on track.

#3: You don’t have an emergency fund.

I know, you’ve heard it a hundred times: you need to have at least six months of income saved in an emergency fund. And yes, it’s much easier said than done. However, I’ve seen too many people (including myself) get hit with a major unplanned expense, whether it’s a car or home repair or a medical bill, or an unexpected job loss, accident or illness that’s led to a drastic reduction in income. When these things happen–and they do, more often than you might think–not having a financial safety cushion can make the situation much, much worse. If you’re forced to rely on credit cards, you’ll end up sinking deeper into debt instead of, yes, saving to become rich.

#4: You started late.

With every year or month that goes by without saving, your chances of becoming rich decrease. Time and compounding interest are your two best friends when it comes to growing money, so wasting them really hurts. Just like exercising, the hardest part of saving is starting. Even if you’re in debt, making little money or have a lot of expenses, you can still always save something — even if it is a small amount. The sooner you get yourself into the habit of saving — regardless of how much — the easier it will be for you to continue and eventually increase those savings. I like to think of saving as a muscle you have to work out and build with practice. Even if you start saving late, you can still become rich if you’re committed enough. But you need to start. Now.

#5: You’d rather complain than commit.

“Life is too expensive.” “I’ll never get out of debt.” “I don’t make enough money.” “Investing is too risky.” I’ve probably heard every excuse for why someone isn’t saving, investing or planning in general, and I’ll admit I’ve used a few of them myself from time to time. It’s easier to be lazy and let bad habits fester than to commit to –and follow through on — changing them. It’s no wonder obesity and debt are epidemics in our country, and that millions of Americans have had to push off retirement. As long as the complaining, excuses and finger-pointing persist, so too will not becoming rich. Instead, take responsibility for your bad habits and focus on what you can do to change them. Then do it.

#6: You live for today in spite of tomorrow.

I get it. It is really hard to think about retirement and other distant fantasies when we have needs and plenty of wants now. The bills have to get paid, the family must be fed, momma needs a vacation — and a new wardrobe to go along with it. The problem is that impulsive and overly-indulgent behavior commonly lead to credit card debt, spending money you might have otherwise saved and, yes, not becoming rich. Do yourself a favor: Ditch the “buy now, worry later” mindset and instead, adopt a “save now, get rich later” mindset.

#7: You’re a one-trick investor.

You might be lucky enough to become rich by betting all your money on one type of investment. Just like you might be lucky enough to win the lottery. But that’s not a strategy for getting rich (at least, not one I’d ever recommend).

One of the worst financial mistakes you can make is putting all your money eggs in one basket. Doing so puts you at too much risk, whether it is being too conservative or too aggressive. Sure, the stock market is on a run and real estate is on an upswing again, but are you prepared for when the tides turn? Because they will. And if you are invested in all fixed-income securities like CDs, bonds and annuities and think you’re safe, inflation should make you think again. Your investment portfolio needs to include a good mix of investments with varied levels of risk and return potential and liquidity (so you can get your money when you need it).

#8: You don’t automate.

Here’s the secret to saving: Automation. Saving is seamless when it’s automatic. Unfortunately, we are not born to be savers. We are impulsive and greedy by nature. Being responsible requires much more discipline. However, automation forces us to be responsible without too much effort. And all it requires is setting up regular transfers from a paycheck or bank account to a savings or investment account. Without it, we are much more likely to spend money we could be saving. Even if it is a seemingly small amount that you automate, those steady investments can make a big difference over time. Automate whatever you can whenever you can; just be careful to avoid overdrafting your account and try to increase your savings amount periodically.

#9: You have no sense of urgency.

You might think you don’t need to worry about getting out of debt or saving because someone, or something else will save you. Maybe it’s a pay raise, a new job, an inheritance, a rich spouse, or the lotteryyou’re counting on. Whatever “it” is, you use it as an excuse to put off taking steps on your own to become rich. The problem is that very little in life is certain. Who knows what will actually happen, or not happen, so why not focus on what you can control now? Save now and save yourself — just in case something, or someone, else won’t.

#10: You’re easily influenced.

Maybe you live with a chronic overspender or a typical day out with your girlfriends involves shopping. Or maybe it’s your inner “Real Housewife” that you sometimes can’t control. We all have negative influences in our lives that threaten our chances of becoming rich. The superficial, materialistic, sensational culture in which we live is probably the biggest one. The suffocating swirl of media that goes along with it makes it ten times worse. The trick is not giving in to temptation. How? Some of it is making conscious choices to avoid putting yourself in vulnerable positions. But most of it is having the willpower to keep the goal of becoming rich in the front of your mind, especially when you are tempted to sabotage yourself.

Read next: The 10 Richest People of All Time

More From Daily Worth:

MONEY Careers

How to Answer the Job Interview Question “How Much Do You Make Now?”

Responding to salary questions the right way will maximize your offer and keep you in the running.

Answering “What are you looking for in terms of salary?” is a tricky question to answer, especially early on in the interview process. Dodging the question by asking “I’d actually like to talk a little more about the job responsibilities” is a good way to deflect. Try to prepare yourself by using tools like PayScale and Glassdoor to find out what other people earn for similar jobs at the company. It’s important to remember there’s more to your income than your salary; you can feel comfortable including your benefits, 401(k) matching, and bonuses when talking about your current compensation.

Read next: The Secret Formula that Will Set You Apart in a Salary Negotiation

TIME martha stewart

Martha Stewart Is About To Make Some Serious Dough

Triscuit Partners With Martha Stewart To Unveil Limited Edition Triscuit Flavor
Michael Loccisano—2015 Getty Images Martha Stewart

Martha Stewart agreed to sell her media empire to Sequential Brands Monday in a deal that was worth $353 million, but there was very little announced about the fate of Stewart herself until today.

Under the terms of a newly released employment agreement, Stewart will claim the title of Founder and Chief Creative Officer and will be paid a base salary of $500,000 a year. But, don’t be fooled by that “base” sum.

Her yearly take home pay will be much higher once you add in an unspecified bonus, an annual “guaranteed payment” of $1.3 million (for what, the document doesn’t quite clarify), plus 10% of gross licensing revenues, which typically exceed $46 million per year.

And don’t forget the perks. Stewart will get six weeks of guaranteed vacation and up to $100,000 in annual expenses.

Martha Stewart Omnimedia also filed an 8-K report Wednesday that outlined the employment agreement and also indicated that Stewart could also collect another $1.7 million each year based on an “Intangible Licensing Agreement.”

All told, it looks like the Queen of Homemaking will make out with an annual payment of about $3.6 million, at bare minimum, according to calculations put together by the blog Footnoted.

Stewart, the biggest shareholder of her namesake Martha Stewart Omnimedia, also stands to net a lump sum of about $167 million from the deal with Sequential Brands based on her stock holdings.

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