Microsoft, CVS to review executive pay levels, official says
ALBANY, N.Y. (AP) — Microsoft Corp., CVS Health Corp., Macy’s and two other companies have agreed to review their policies on executive compensation at the request of the New York state pension fund and Comptroller Thomas DiNapoli.
DiNapoli announced the agreements on Friday. Under the terms, the companies agree to consider what they pay all levels of employees as a factor when setting CEO salaries, instead of simply looking at what other CEOs earn.
Similar agreements were reached with Salesforce.com and TJX Companies Inc., the parent company of TJ Maxx.
The changes were sought by the state’s $207 billion pension fund, which DiNapoli oversees. The fund’s sizeable investments give DiNapoli significant leverage over publicly traded companies.
DiNapoli says the agreements are intended to address the rising disparity between typical worker wages and CEO salaries.
This story has been corrected to show that the pension fund is $207 billion, not $207.