How Much Are the Top CEOs in Mass Being Paid?

Friday, August 03, 2012

Ashley Klann, GoLocalWorcester Contributor

An "Executive Paywatch" from the AFL-CIO shows how much the top CEOs in the Commonwealth are making. With so much political discussion of Wall Street, the 1%, and corporate responsibility, the AFL-CIO sheds light on just how much of a gap there is between local CEOs and the average household.

The report is a union-backed initiative that has compiled a list of the top earners in the state.

Worcester’s Spot on the List

While several Central Mass businesses made the list of top-earning CEOs, only one Worcester business made the list.

Frederick H. Eppinger, President and CEO of Hanover Insurance Group made $4,183,778 in total compensation in 2011. By comparison, the average worker made $34,053 in 2011. Frederick H. Eppinger made 123 times the average worker's pay. See how other workers compared.

Hanover Insurance provides fire, marine, and casualty insurance.

Across the Region

Worcester’s contribution to the list comes far from the top. Joseph M. Tucci of EMC Corp. in Hopkinton, a company that leads in cloud computing, made $13,238,857 in compensation in 2011, topping the list for Central Mass.

Another notable spot on the list is from the CEO of BJ's Wholesale, which holds its headquarters in Westborough. Laura J. Sen raked in $4,046,318 in compensation in 2010 for heading this membership-only warehouse chain.

In the Commonwealth

According to the site, the average CEO pay in Massachusetts is $3,692,611, while the median household income in the Commonwealth from 2006-2010 was $64,509. Across the state, CEOs make on average, over 50 times as much annually than households take in.

The top 1% of Americans earn on average $343,927 per year in taxable income, according to Bankrate.com. The top five CEOs in Massachusetts go beyond this figure.

The top-earning CEO in the Commonwealth, Paul A. Ricci, banked a total of $20,712,309 in compensation in 2011 for heading Nuance Communications Inc. in Burlington. The business specializes in multinational communication software and communication technology.

The CEO of Affiliated Managers Group, Raytheon, State Street Corp. and One Beacon Insurance Group were all included in the top five, raking in 8-figure salaries for heading their companies in the Commonwealth.

Still, these top earners in the Mass. business world pale in comparison to the top national CEOs. Apple's CEO, Timothy D. Cook, took in $377,996,537 in compensation in 2011.