Salary of Brazilian CEOs exceeded US$205 million in 2021

The combined annual compensation of the 90 CEOs of the companies that make up the Ibovespa, the main stock index of the Brazilian stock exchange, exceeded the R$1.1 billion (US$205 million) mark in 2021, which means an average monthly salary of more than R$1 million (US$186,000) per executive.

Even with the pandemic and the slow growth of the economy, the remuneration of those who occupy the top positions in Brazilian organizations is on the rise: the increase of these executives was 30%, on average, compared to the previous year.

The issue of executive compensation is the subject of discussion not only in Brazil but around the world. In the United States, the topic generates controversy.

Recently, the e-commerce giant Amazon.com was questioned about the remuneration of Andy Jassy, its CEO, who received R$1.1 billion in one year.

WHO ARE THE RICHEST CEOS IN BRAZIL?

The earnings survey was based on the public documentation on remuneration listed companies have to hand in to the Securities and Exchange Commission (CVM) and was tabulated by Renato Chaves, a specialist in corporate governance.

The data do not inform the executive who receives the highest salary, but, generally, the CEO has the highest remuneration. In Brazil, regulation has required disclosure of the salaries of publicly traded companies’ executives since 2019.

The rule, at the time, was the subject of many complaints from companies, which said they feared for the safety of executives.

The data show that, even among those who receive salaries that would make anyone envious, there is a group of “super VIPs”. Of the billionaire salaries paid by the 90 companies of Ibovespa, R$400 million, or 30% of the total, are in the hands of only ten executives.

Brazilian CEOs with the highest salaries in 2021:

• Sergio Rial, former president of Santander bank in Brazil: R$59 million;
• Eduardo Bartolomeo, leader of mining company Vale: R$55 million;
• Milton Maluhy, from Itaú Unibanco: R$53 million;
• Pedro Zinner, president of Eneva: R$52.7 million;
• Gilberto Tomazoni, from JBS: R$52.6 million.

Concerning the 30% jump in the compensation of top executives from one year to the next, the companies’ main explanation refers to the fact that in 2020, the first year of the covid-19 pandemic, many of the salaries were not adjusted at all – and that last year was the time to compensate for part of these losses.

Estadão asked the ten companies that pay the highest salaries. Vale said its remuneration follows market practices. Bradesco bank said, in a note, that the payment “is approved at a shareholders meeting”. The other companies preferred not to comment.

With information from Exame