How Much Do CEOs Earn Per Hour?

Emeryville City Hall is considering raising the wage of the lowest paid workers to as much a $14.42 per hour for big businesses in town like Panera Bakery, Starbucks, Denny's, Baskin Robbins, I-HOP and Kentucky Fried Chicken (some of these Emeryville restaurants or their parent companies are highlighted in yellow below). How does that stack up against the CEO's of these corporations?   USA Today has assembled a compilation of several CEO pay to get an idea:

Maximum Wage! How much CEOs earn an hour

By: Matt Krantz April 6, 2015 6:30 am

Getting paid $10-an-hour is a welcome lift for Walmart (WMT) and McDonald’s (MCD) workers. But compare that with what the average restaurant and retail CEOs earn.

The 13 CEOs of a group of well-known retailers and restaurants haul in an average $5,859 an hour according to a USA TODAY analysis of data from S&P Capital IQ. Putting that another way: It would take an employee making $10 a hour more than two months working each day to earn as much as the average CEO in these industries make in a single hour. The analysis assumes a 40-hour-a-week schedule and uses total reported pay by the companies in the most recent proxy statements, which for some companies is 2014, but for some others is still 2013. Total pay includes salary but also stocks awards and bonuses.

CEO pay will be on top of investors’ minds this week as more proxy statements pour in from companies. These documents show investors how much they’re paying the top management. CEO pay is an annual source of angst for investors who, on one hand, are willing to pay managers whatever it takes to get good results, but at the same time can’t help but puzzle over the seemingly non-stop march of CEO pay higher.

This year stands to be even more charged as there’s pressure for restaurants and retailers to boost wages to hourly employees. Rising hourly pay at Walmart, McDonald’s and Target (TGT) – all announced this year – stand to drive a critical cost for all these companies higher. The raises also draw greater attention to pay disparity. Neither Target nor McDonald’s CEOs’ pay were included because their current CEOs haven’t served a full year yet.

It’s still early in the proxy season – and many companies haven’t reported CEO pay for 2014, yet. Walmart, for instance, hasn’t reported fiscal 2015 pay yet (so fiscal 2014 pay through January 2014 was included in this analysis).

No one expects a line cook or a retail clerk to earn as much as the CEO. And it’s quite possible CEOs put in more than 40 hours a week (statistics on a 60-hour workweek are also included in the chart below). But the attention to rising wages will certainly again turn a spotlight on how much the people at the top of these companies are earning.

The biggest CEO payout – by far – goes to the co-CEOs of Chipotle Mexican Grill (CMG). Montgomery Moran and Steven Ells, co-CEOs, pulled down more then $13,000 a hour apiece. Compare that with the average $9.15 an hour paid to Chipotle crew members, according to Glassdoor.com. It would be very difficult for investors to complain too much, though, since shares of Chipotle gained 29% in 2014 and is the fast-casual concept to beat this year.

Over at Wal-Mart, CEO Michael Duke earned what amounted to $2,704 a hour during the company’s most recently reported proxy for the fiscal year ended in January 2014. That ranks him below well below average among the retailers and restaurants analyzed – which includes some fiscal 2014 and 2015 years. But even at that total pay, it would take the typical Wal-Mart worker more than a month working every day to earn as much as Duke makes in an hour. Wal-Mart typically files its annual proxy statement at the end of April.

Again, it cannot be stressed enough this analysis doesn’t even remotely assert CEOs should be paid closer to $10 an hour. Few compensation experts or even investors would agree with that.

But investors are constantly looking for ways to put wages and pay into context – which will be especially true this year and especially in these industries. Looking at CEO pay per hour helps investors gain some perspective during proxy season when evaluating CEO’s eye-popping pay packages.

HOURLY PAY FOR CEOS AT KEY RETAILERS AND RESTAURANTS

Company	Symbol	CEO	Pay per hour (40 hrs./wk)	Pay per hour (60 hrs./wk)
Chipotle	CMG	Montgomery Moran	$13,489	$8,993
Chipotle	CMG	Steven Ells	$13,471	$8,981
Starbucks	SBUX	Howard Schultz	$10,285 *	$6,857 *
Macy’s	M	Terry Lundgren	$7,904 *	$5,269 *
Dunkin Brands	DNKN	Nigel Travis	$4,889	$3,260
YUM Brands	YUM	David Novak	$4,795	$3,196
J.C. Penney	JCP	Myron Ullman	$4,629	$3,086
Wendy’s	WEN	Emil Brolick	$3,645 *	$2,430 *
Dominos	DPZ	Patrick Doyle	$3,571	$2,381
DineEquity	DIN	Julia Stewart	$2,766 *	$1,844 *
Sears	SHLD	Edward Lampert	$2,766	$1,821
Wal-Mart	WMT	Terry Duke	$2,704	$1,803
Panera Bread	PNRA	Ronald Shaich	$1,292 *	$862 *

Sources: S&P Capital IQ, USA TODAY research, based on 40 and 60-hour workweek and 52.2 weeks per year, total reported pay from most recent proxy
* most recent proxy end date is prior to Dec. 2014
** excludes Target and McDonald’s since current CEOs have served less than a year

Emeryville Among the Costliest Places to Rent in the USA

Here's Why Developers Keep Building Rental Only Apartment Buildings

Emeryville is in a housing building boom.  But developers keep telling our City Council ownership condominiums are no longer possible to build.  The market won't support them they say.  They "won't pencil out" in developer parlance.  The City Council feels the developer's pain and so they keep approving housing projects with nothing but rental units, because developers will lose money if they build any other kind of housing, you understand.  
That's been the modus operandi for the last several years and as a result, all we've been getting are 100% rental housing projects in our city.  Now we come to find out there's something else at play, unmentioned by the developers: they can make a boatload of profit off rental units.  So why would they build condominiums when they can make so much more profit by building rental unit apartment buildings (especially with such a compliant City Council)? 
In addition, Emeryville's high rent puts a lie to the NO on Measure U & V's argument that Emeryville housing is kept affordable by the lack of a real estate transfer fee.  It's not affordable here. 

USA Today reveals the REAL reason we keep getting only rentals in Emeryville.  We're on a very exclusive list; when weighted for income and other factors, Emeryville comes out as the fifth most expensive place to live in the USA.  It's not a list anyone but developers would want to be on.
From USA Today:

The priciest neighborhoods for renters

Christine DiGangi, Credit.com 10:03 a.m. EDT October 11, 2014

If you're looking for an affordable place to rent, the number of bedrooms is only one factor in price. In fact, location is going to have a massive impact on your rent payment. It's no secret rent is high in some of the country's largest cities, but prices vary widely: New York City is generally an expensive place to live, but a few blocks can mean a difference of hundreds — even thousands — of dollars.

Using the Census Bureau's list of urban areas with the highest costs of living, Apartments.com and real estate data company CoStar put together a list of 14 neighborhoods in different areas where renting a one-bedroom apartment is most expensive. Rather than compiling a list of the highest rents overall (which would probably just be a collection of neighborhoods in New York City and San Francisco), this list names one neighborhood — the one with the highest average rent — per urban area. Still, the rankings are dominated by New York and California cities.

You'll need more than money to live in a trendy shoebox (square footage wasn't factored into these lists, but given the population densities of these areas it's likely many of these apartments are, um, compact). Landlords regularly run credit checks on prospective tenants, and if you have a poor or non-existent credit history, you might have trouble getting the apartment.

Landlords want to know you'll pay rent in full and on time. With poor credit, you might have to pay a high security deposit or get a co-signer on the lease. Before apartment hunting, make sure you know your credit standing so there are no surprises: You're entitled to your free annual credit reports through AnnualCreditReport.com, and you can get two of your credit scores for free on Credit.com.

On top of average monthly rent, Apartments.com factored in the median monthly household income, cost of living, inflation and percent of household income spent on rent into the rankings. Each category was weighted, with the most weight given to the percent of income people spend on rent. With all that taken into account, here's how the rankings shake out.

14. Rittenhouse Square, Philadelphia, Pa.
Includes ZIP codes 19102, 19103 and 19146
Average monthly rent for a one-bedroom apartment: $1,860

Called "Philadelphia's most popular town square" by Visit Philadelphia, this has long been a popular spot in the city. The square was designed in 1913, though some of its mansions are much older, and it serves as a park as well as a home to much of the city's public art.

13. Southwest Pasadena, Pasadena, Calif.
ZIP code 91105
Average monthly rent for a one-bedroom apartment: $2,957

The Southwest region of Pasadena is largely residential area along the Arroyo Seco, a seasonal river, canyon and watershed area. The Rose Bowl stadium is along the Arroyo Seco, and Pasadena is home to the annual Rose Bowl game and Tournament of Roses Parade.

12. Foggy Bottom / George Washington University / West End, Washington, D.C.
Includes ZIP codes 20006, 20036, 20037 and 20052
Average monthly rent for a one-bedroom apartment: $2,662

There's plenty of historical sites to visit in the nation's capital, and Foggy Bottom is no different. According to the Washington D.C. Register of Historic places, many of the rowhouses date back to the 1870s, and an older structure may have been a part of the Underground Railroad. As far as more recent history goes, Foggy Bottom is also home to the Watergate Complex, which includes the Watergate Hotel and Office Building of Nixon-era fame.

11. Hunters Point, New York City, N.Y.
ZIP code 11109
Average monthly rent for a one-bedroom apartment: $2,811

The Census Bureau considers the boroughs of New York City different urban areas, which is why this list includes three neighborhoods in the city. Hunters Point is in Queens, but its proximity to Midtown Manhattan makes it extremely appealing. The waterfront industrial neighborhood is rapidly developing into a high-end residential destination, and apartments are in high demand.

10. Harborview, San Diego, Calif.
ZIP code 92101
Average monthly rent for a one-bedroom apartment: $2,206

This waterfront district west of downtown San Diego is largely full of hotels and upscale shopping. You'll also find a collection of museums along the water, but it's not necessarily just a place to casually stroll to see some history or art — it's a landing spot for cruise ships, as well.

9. Newport Center, Newport Beach, Calif.
ZIP code 92660
Average monthly rent for a one-bedroom apartment: $3,133

This area is home to Fashion Island, an upscale, open-air mall. The shopping and business district lies close the water, as well as a country club and art museum.

8. Historic Downtown, Jersey City, N.J.
ZIP code 07302
Average monthly rent for a one-bedroom apartment: $3,068

Jersey City is just across the Hudson River from Manhattan, and this collection of neighborhoods is just west of the waterfront. The area includes the city hall and a great deal of 19th century architecture, according to DestinationJersey.com.

7. Great Neck Plaza, Great Neck, N.Y.
ZIP code 11021
Average monthly rent for a one-bedroom apartment: $3,223

Great Neck Plaza is a historical village on the Great Neck Peninsula of Long Island, just outside New York City. It dates back to 17th century settlements and is now a popular shopping and dining area, though members of the community enthusiastically work to preserve the historical qualities of the village.

6. Crescent Park, Palo Alto, Calif.
ZIP code 94301
Average monthly rent for a one-bedroom apartment: $3,157

This Bay Area neighborhood is popular among the affluent Silicon Valley crowd — Facebook's Mark Zuckerberg lives there. It's an exclusive place but also close to the freeway, making it relatively easy to get around.

5. Golden Gate, Oakland/Emeryville, Calif.
ZIP code 94608
Average monthly rent for a one-bedroom apartment: $2,695

This diverse area is known as a hipster hub with lots of specialty shopping, according to a profile in Oakland Magazine. As its name suggests, the northern Oakland neighborhood once provided a nice view of the Golden Gate Bridge, but over time, it became blocked by building development.

4. Government Center, Boston, Mass.
ZIP code 02114
Average monthly rent for a one-bedroom apartment: $3,782

This neighborhood was built over the historic, bustling (now dismantled) Scollay Square. As anyone might guess, government buildings like city hall are now located here, making it an easy commute for city workers.

3. Yerba Buena, San Francisco, Calif.
ZIP code 94107
Average monthly rent for a one-bedroom apartment: $3,643

Yerba Buena is a busy section of downtown San Francisco featuring high-end dining, shopping, hotels and living space, as well as a collection of art galleries and gardens, according to the neighborhood association's website. Now boasting non-stop activity, Yerba Buena used to be pretty sparse and featured a large parking lot.

2. Dumbo, New York City, N.Y.
ZIP code 11201
Average monthly rent for a one-bedroom apartment: $4,023

The name of this neighborhood in Brooklyn is an acronym for Down Under the Manhattan Bridge Overpass and features a collection of famous food stops and art galleries. In recent years, it has been highlighted as a tech hub for New York.

1. Penn Plaza/Garment District, New York City, N.Y.
ZIP code 10001
Average monthly rent for a one-bedroom apartment: $4,440

This neighborhood is the heart of the fashion scene in New York, dating back to its time as the clothing-production hub of the U.S. in the 1800s. People in this part of Manhattan use an astonishing 70% of their monthly income for rent, according to Apartments.com, leaving them with a fraction of their monthly budget to spend on the high-end merchandise designed and produced there.