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April 23, 2007
To Whom the Tolls Pay--CEO and Worker Pay in Home Building
In a review of executive compensation a few weeks ago, the New York Times found that Robert Toll, Chief Executive Officer (CEO) of the Montgomery County based luxury home builder Toll Brothers, made $23,408,911 in 2006
With a base salary of $1.3 million, Toll took in $22.1 million in bonuses, perks, and options, while Toll Brother's net income declined by 15% and shareholder returns declined 22 percent.
In February the Philadelphia Inquirer reported that a firm that advises investors on corporate governance found that:
"The company's [Toll Brothers] executive compensation . . . is high . . . given the company's financial performance relative to peers,"
In 2006, U.S. construction workers employed in the construction of new single-family homes were paid just under $709 a week. CEO Toll earned $450,171 a week or 635 times more than the average construction worker. The weekly wage figures for construction workers in new residential home construction may be overstated as official statistics may be missing some underground employment.
Posted by Price at April 23, 2007 12:00 PM