TIME Executive Pay

CEO Pay Tops $10-Million Mark

First time median passes $10-million threshold

CEO pay had long since crossed the six and the seven-figure thresholds, but now it’s all about eight figures.

Median CEO pay hit a record high of $10.5 million in 2013, an 8.8% rise over 2012, according to a new joint study by the Associated Press and Equilar, an executive pay research firm. Compensation packages, buoyed by soaring stock prices, reaped the gains from the market. CEO pay continued its fourth consecutive year of gains since the recession.

The typical CEO now makes 257 times the salary of an average worker, the AP reports. In 2009, CEOs made an average of 181 times as much. More than two-thirds of CEOs in the S&P 500 received a pay raise, with the heads of banks receiving the biggest hikes, averaging 22%.

The highest-paid CEO, with a total payout of $68.3 million, was Anthony Petrello of Nabors Industries, an oil and gas drilling company.

[AP]

 

MONEY Careers

Reading This From Behind a Desk? You’re More Likely to Have a Fatter Wallet—and a Fatter Waist

While better paid, office workers are more likely to be overweight than their non-desk jockey peers. Use these tips to make sure your wallet is the only thing that's plump.

Spend most of your workday behind a desk? First, the good news: You probably make more money than someone who doesn’t, according to a new survey. CareerBuilder has found that workers in desk jobs are twice as likely to make more than $100,000, compared to those who do not work behind a desk.

Now for the not-so-good news: You’re also more likely to be overweight.

Nearly six in 10 of desk jockeys identify as overweight vs. five in 10 non-desk workers. And 46% report that they have gained weight in their current jobs.

Researchers have long known that sedentary work puts adults at a higher risk of obesity. But desk workers also told CareerBuilder about the psychic toll. Half of the respondents say that they feel “stuck inside,” and 56% say they spend most of their time staring at computer screens.

If you’re tied to a desk, here are some ways to stay fit and fight burnout:

Work on your feet

Citing the long-term dangers of sedentary work, the American Medical Association urges employers to let workers use standing desks or isometric balls. Ask your boss if you can make some changes to your workspace and spend more time on your feet.

Take a hike

Researchers have found that even short breaks from sitting are associated with better health outcomes. Every once in a while, remember to get up and walk around the office.

Do some desk exercises

One study suggests that workers today burn about 100 fewer calories than workers did in 1960. Adding short periods of exercise—such as these that you can do without leaving your workspace—to your daily routine could help keep off the extra pounds.

TIME Military

The Devil Dogs Turn Pavlovian

Sergeant Major of the Army Raymond F. Chandler, Master Chief Petty Officer of the Navy Michael D. Stevens, Sergeant Major of the Marine Corps Micheal P. Barrett, and Chief Master Sergeant of the Air Force James A. Cody, testify before the Senate Subcommittee on Personnel at the Russell Senate Office Building in Washington, D.C., on April 9, 2014. (U.S. Marine Corps photo by Sgt. Marionne T. Mangrum)
Sergeant Major of the Marine Corps Micheal Barrett testifying before the Senate. Sgt. Marionne T. Mangrum / Marine Corps

Reaction to top Marine's comments show how tough military compensation reform will be

The top enlisted Marine called for a little bit of sacrifice by his fellow devil dogs last week that has set off a firestorm that’s still raging. Senator Kirsten Gillibrand, D-N.Y., asked Sergeant Major Micheal Barrett what would be the impact of slowing the rate of growth in military compensation. He responded:

Marines don’t run around and ask and what’s on their mind is compensation, benefits or retirement and modernization. That’s not on their minds…Hey, you know what? Out of pocket, you know what, I truly believe it will raise discipline and it’ll raise it because you’ll have better spending habits, you won’t be so wasteful.

The independent Marine Corps Times newspaper lit the fuze with its headline on a story about the decorated combat vet’s comments:

Sgt. Maj. of the Marine Corps Barrett: Less pay raises discipline

That led him to issue a clarifying letter:

Recent reporting of my testimony may have left you with a mistaken impression that I don’t care about your quality of life and that I support lower pay for servicemembers. This is not true.

In fact, despite the headline, no one is talking about cutting troops’ pay. But like Pavlov’s dogs—trained to salivate at the ringing of a bell—some troops pounce at any suggestion of scaling back military compensation.

“If you consider the benefits military members exorbitant like the Sgt Maj does that’s your right, bought and paid for with the blood of the millions you think are overpaid,” said one commenter who said he earned $40,000, including combat pay, for the year he spent in Sarajevo during the Balkan wars. “It boggles my mind that anyone can justify that as well compensated considering I was working minimum 13 hr days at that time, living in a shared space with 17 other guys sharing a single bathroom and even in a fairly friendly (as war zones go) environment was shot at twice and almost stepped on a landmine,” he said. “Pardon me if I have a tough time considering that equal to managing a Kinko’s, working as an intern or selling cars.”

“Enlisted troops are rather well compensated for their education/experience level,” a second poster noted. “Not saying they deserve a pay cut by any means, but for someone in their early 20s to gross 45-55 thousand a year is nothing to sneeze at.”

“Enlisted troops are paid better than some civilian counterparts,” a third countered. “But the fact their life is on the line, there isn’t enough pay. If you didn’t serve, shut the heck up!”

A common theme among posts by readers of the Times story is that those who didn’t serve in uniform don’t have the bona fides to discuss military compensation. That, of course, is what has happened on Capitol Hill. With fewer veterans in Congress, lawmakers—perhaps feeling just a tad guilty—routinely have boosted annual military pay raises beyond what their commanders and Pentagon civilians have recommended.

Last month, Defense Secretary Chuck Hagel said he wants to take the $2.1 billion a year saved by modest trims in compensation and invest it in training and weapons. Those are the changes Barrett was discussing. Here’s what Hagel said:

We need some modest adjustments to the growth in pay and benefits…First, we will continue to recommend pay raises. They won’t be substantial as in the past years—as substantial—but they will continue. Second, we will continue subsidizing off-base housing. The 100% benefit of today will be reduced, but only to 95%, and it will be phased in over the next several years. Third, we are not shutting down any commissaries. We recommend gradually phasing out some subsidies, but only for domestic commissaries that are not in remote locations. Fourth, we recommend simplifying and modernizing our three TRICARE programs by merging them into one TRICARE system, with modest increases in co-pays and deductibles for retirees and family members, and encourage using the most affordable means of care. Active-duty personnel will still receive health care that is entirely free.

The firefight suggests just how tough it is going to be to tame military spending. After all, the Marines have the largest share of first-termers among the four services, many of whom stay for only a single four-year hitch before moving on with their lives. If words from the senior enlisted leatherneck can set off such a storm among his troops, it’s likely to be even tougher to convince soldiers, sailors and airmen that they may be forced to relax their webbed belts a little more slowly than they had planned.

But this shouldn’t come as much of a surprise. The fealty the nation has shown its warriors since 9/11 has put it into this predicament. Granted, it is impossible to place a price on the blood U.S. troops have shed on behalf of the 99% of the citizenry who elected not to serve, nor on the mental wounds more than a decade of war has inflicted on many of them.

But it’s also true that U.S. troops—all volunteers—earn more than 90% of their civilian counterparts with similar education and experience.

“In my 33 years, I have never seen this level of quality of life ever—we have never had it so good,” Barrett told the Senate panel. “If we don’t get a hold of slowing the growth, we will become an entitlements-based, a health-care-provider-based corps, and not a warfighting organization.” Those are words you often hear in private, but rarely out in the open.

In some quarters, the military is increasingly sounding less like a service, and more like a guild.

TIME White House

Obama To Require Overtime Payments For More Salaried Workers

A forthcoming rule from the administration is part of the president's effort to work around Congress on wage issues ahead of the midterm elections

President Barack Obama will order the Department of Labor to take steps to force private-sector employers to pay overtime to more salaried employees, a White House official confirmed Wednesday.

The administration’s proposed rule-making under the Fair Labor Standards Act, first reported by the New York Times, would push employers to pay overtime to more workers by raising the weekly wage cap full-time employees have to hit before being ineligible for overtime. The move, which will come Thursday, is one component of the president’s efforts to work around a divided Congress this year, while positioning Democrats favorably before this fall’s midterm elections.

Under current regulations, salaried employees making less than $455 a week must be paid overtime, a threshold set in 2005 by the Bush administration. In 1975 it was $250 per week, the equivalent of $970 in today’s dollars. The White House is not yet revealing its proposed new cap—which will be subject to public comment and will likely face strong opposition from the business community—or when it will kick in. But a White House official said the proposal will help “millions,” and offered up California and New York as models for the proposal. Those states have set thresholds of $640 per week and $600 per week (which will increase to $800 per week and $675 per week in 2016), respectively.

“Due to years of neglect, one of the linchpins of the middle class, the overtime rules that establish the 40-hour workweek, have been eroded,” the official said. “As a result, millions of salaried workers have been left without the protections of overtime or sometimes even the minimum wage. For example, a convenience store manager or a fast food shift supervisor or an office worker may be expected to work 50 or 60 hours a week or more, making barely enough to keep a family out of poverty, and not receive a dime of overtime pay. It’s even possible that some of these workers make less than the minimum wage per hour.”

The move follows an executive order by Obama to raise the minimum wage paid to new federal contract workers, as well as a public relations push to raise the federal minimum wage under the banner of “Opportunity for All.” The White House is betting on Republican opposition to the popular legislative and executive actions to boost Democrats in the polls this year.

MONEY career

Ace Your Annual Review

No two words inspire more dread in managers and employees alike than these: performance reviews. Rather than letting your annual checkup get you down, though, consider the upside. This is one of the few times of the year you get to chat with your boss about your career. And with a bit of strategizing, you can set the stage for a big raise or promotion in the year to come.

Show you’re a top performer

Your supervisor probably doesn’t recall your every accomplishment over the past 12 months, so jog his or her memory. Richard Klimoski, a management professor at George Mason University, suggests submitting a one-page self-evaluation before the review. That way you draw the baseline from which your performance is measured. Sum up the year in three to five major contributions — with evidence. Highlight, for example, that you increased sales by 20% and share a testimonial from a new client. You’ll seem more genuine if you also identify skills or knowledge you must gain to take your performance to the next level.

Request a real critique

“Even when you don’t agree with it, feedback is useful,” Steve Miranda of Cornell University’s Center for Advanced Human Resource Studies says. “It provides insight as to how you’re being perceived.” You’ll need this information to clear hurdles standing between you and your career goals.

Related: Baby on the Way? Time to Make a Budget

Unfortunately, managers are often as uncomfortable giving negative feedback as subordinates are at receiving it. So you may have to drill down to get real advice. You might say, “I understand my presentations could be better. Perhaps I should work with a public-speaking coach?” Respond positively to criticism, owning up to problems and offering solutions; if you really disagree, ask for examples, so you can separate fact from perception.

Plan your compensation

Even if your review is tied to a pay increase, this generally isn’t the time to fight for more money — budgets are typically set by the time of the review, says Lori Holsinger, a principal at New York HR consulting firm Mercer.

Related: From Real Estate Exec to Laundromat Owner

What you can get: details on the salary review process to help you prep for next year. Find out how and when your raise was decided and who was consulted. Did you get a big bump? Ask what actions you can take to repeat the result. Vice versa if you got pennies.

Get on board with the boss

End the conversation by asking for measurable short- and long-term goals, advises Dallas career coach Jean Casey. Align at least a few of these objectives with your supervisor’s. You might say, “I know our department is dealing with a budget deficit. What can I do to help?” Your efforts to get on the same page will most likely make your manager happy, which will in turn keep your career moving forward. As Casey puts it, “You want to work with the boss — not for the boss.”

MONEY Careers

The Salary Boost of Working Out

Working out regularly pays off, in more ways than one. Photo: Spencer Higgins

Get fit and get a raise?

Exercising three or more times a week leads to 6% higher pay for men, on average, and 10% for women, Cleveland State researcher Vasilios Kosteas reported recently.

The hike is due to exercise-induced productivity boosts, he says, and is separate from the well-established link between obesity and lower earnings.

Fiscal fitness plans

Start at the office. A health club can cost more than $500 a year, but your health plan may give you a break. Customers in 23 Blue Cross/Blue Shield plans (see blue365deals.com for details) can buy memberships for only $300 a year.

Plus, one in five employers subsidize gym costs, says Aon Hewitt.

Join forces. Two-thirds of trainers lower their prices for groups, so team up with friends to request a per-person rate that’s 20% to 30% less than for a one-on-one session, advises fitness industry consultant Bryan O’Rourke.

An extra payoff: Exercising with pals gives you accountability and support — not just a deal.

Related: When not to call your doctor

Buy a gym. For less than $200, you can get a gym bag’s worth of essential exercise gear: dumbbells, resistance bands, a jump rope, and a fitness ball. Then use Nike’s free Training Club iPhone app to guide you through your workout.

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