Feature The Industry Rich List


Company turnover 2016 ($m)


Amazon $135.99m


$72.3bn, enough for him to be only the third richest person in the world. In 2011, Bezos asked the Amazon


board to freeze his base salary at the cut-rate $82,000, and since then he has received no cash bonuses, stock awards or equit compensation (although Bezos did sell $1bn in Amazon stock early this year to fund his Blue Origin space flight company). The extra $1.6m Bezos received last year was for travel and securit services.


Jargon busters


C.e.o. remuneration is an oſten complicated business, with a series of benefits, peformance-based incen- tives, stock awards and pension schemes added to salary. Engstrom, for example, earned £1.13m in weighted incentives based on targets for RELX’s revenue, profit, cashflow and various other key performance objectives: in 2016 he achieved 102.1% of these goals. He also had a pension of £847,000, benefits of £73,000 and stock awards worth almost £7.3m. Engstrom’s compensation was actually reduced by 7.5% from 2015, though he moved up a spot to become the fiſth best-paid c.e.o. of FTSE 100 companies (advertising giant WPP’s Sir Martin Sorrell was top, on £48.1m). In fact, that drop is part of a trend,


www.thebookseller.com


Engstrom’s compensation was actually reduced by 7.5 per cent from 2015, though he moved up a spot to become the fifth best-paid c.e.o. of FTSE 100 companies


though RELX is slightly behind the curve—FTSE 100 c.e.o. pay declined by 17% overall in 2016, according to a report by HR body Chartered Insti- tute of Personnel and Development and campaigner High Pay Centre. Still, drop or not, there is quite a gulf between Engstrom and the bulk of his employees. Salary comparison website Glassdoor says the average senior editor at Elsevier in the UK


earns £36,000 per annum; it would take them almost 271 years to make what Engstrom earned in 2016. Barnes & Noble investors may look at this chart with grited teeth. Ex-c.e.o. Ronald D Boire lasted less than a year before being ousted by the board, yet took home nearly $8.6m, the bulk in share awards (B&N has not announced any severance pack- age for Boire, so there could be yet more money coming his way from the retailer). The average entry-level bookseller at B&N makes around $19,000 a year, and would need four and half centuries to earn $8.6m. Perhaps the least shocking thing about this chart is that there is a huge gender gulf, with McKinstry and Indigo Books & Music’s Heather Reis- man the only women on the list. None of the top 20 hail from a black, Asian or minorit ethnic background.


The Industry Rich List: Fiscal Year 2016 executive


company


1 Erik Engstrom 2 James Smith


3 Nancy McKinstry 4 Ronald D Boire* 5 Stephen Clarke 6 Dan Knotts 7 Mark Allin*


8 Richard Robinson 9 Stephen Carter 10 Arnaud Lagardère


RELX UK/NL ThomsonReuters Can Wolter Kluwer Barnes & Noble W H Smith


R R Donnelly John Wiley


NL US UK US US


Scholastic US Informa UK Lagardère FR


*Resigned or departed their position since August 2016. 1 cash bonuses and other compensation. 2


comparison). **Interim c.e.o since September 2016. 23


location base salary £1,131,000


$4,243,020


R R Donnelly $6.9m Pearson $5.6m* RELX


$4.8m* ThomsonReuters B&N $4.1m


Wolter Kluwer $3.3m*


Lagardere $2.3m* B&N Education $1.8m McGraw Hill $1.7m*


*Publishing revenue only


$4.8m*


total1


£10,563,000 $13,412,100


€1,312,000 €11,301,000 $780,000 £550,000 $781,250 $738,000 $970,000 £817,100


€1,140,729


$8,592,806 £5,244,000 $6,471,797 $4,706,063 $4,622,330 £3,291,476 €2,851,822


total2


$14,170,790 $13,412,100 $13,317,012 $8,592,806 $7,034,942 $6,471,797 $4,706,063 $4,622,330 $4,415,993 $3,360,058


Total remuneration includes benefits, share awards, Total remuneration converted to US$ (mid-market rate on 31.12.16 for


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