Hartford Business Journal

6 Hartford Business Journal • April 9, 2018 • www.HartfordBusiness.com Corporates begin to unveil CEO pay ratios By Matt Pilon mpilon@HartfordBusiness.com P ublicly traded companies in Connecticut and beyond have begun to disclose how much their employees earn com- pared to their chief executives. The new disclosure requirement is one small component of the Dodd- Frank Wall Street Reform and Consum- er Protection Act, the wide-ranging law Congress passed in 2010 in an attempt to reform some of the practices that helped lead to the 2008 financial crisis. The pay ratio disclosure rule has kicked in, despite attempts by some in Congress to repeal it. As of press time, a majority of Con- necticut publicly traded companies headquartered or with a significant presence in Greater Hartford made their first pay ratio disclosures in fil- ings to the U.S. Securities and Ex- change Commission. From banks to manufacturers to insurers, companies are required to disclose median employee pay for the vast majority of their workers and how it compares to CEO pay. For local com- panies that filed disclosures as of press time, New Britain's Stanley Black and Decker had the biggest pay disparity, with its CEO compen- sation 357 times its employees' median pay. Stanley Presi- dent and CEO Jim Loree earned $16.2 million last year, compared to the company's median employee pay of $45,449, the company said. However, Stanley's ratio illustrates that comparisons to other companies can be tricky, since some have all U.S. workforces and others have a high number of employees in foreign coun- tries, where pay levels may be lower. Stanley, for example, has more than 50,000 workers, 70 percent of which are outside the U.S. The company said that impacted its ratio. "As an additional point of reference, if this calculation took into account only our U.S. employee population, the estimated pay ratio would be 186:1," the company wrote in an SEC filing. Second highest on the local list in terms of pay disparity was Bloomfield health insurer Cigna, whose CEO David Cordani made $17.6 million last year, compared to median employee compen- sation of $63,010, a ratio of 279:1. Cigna has 38,271 U.S. employees and 7,561 in other countries (and was CEO Pay Ratios in Connecticut Company CEO Pay Median Employee Salary Ratio 2017 CEO Stanley Black & Decker $16,236,936 $45,449 357:1 Jim Loree Cigna $17,595,792 $63,010 279:1 David Cordani United Technologies Corp. $17,027,493 $72,433 235:1 Greg Hayes Pitney Bowes $6,341,368 $44,571 142:1 Marc B. Lautenbach Barnes Group $8,506,969 $61,522 138:1 Patrick J. Dempsey Eversource $15,915,461 $124,959 127:1 James J. Judge Webster Financial $5,800,260 $58,492 99:1 James C. Smith People's United Bank $5,124,582 $61,039 84:1 John Barnes Kaman $2,683,641 $63,104 43:1 Neil Keating Source: U.S. Securities & Exchange filings Pratt sees Embraer stoking its global GTF ambitions By Gregory Seay gseay@HartfordBusiness.com T he Scandinavian delivery of the first batch of single-aisle, twin-engine jetliners powered by Pratt & Whitney's geared turbofan engine means greater oppor- tunities not just for Pratt but also for Connecticut, which supplies many of the engines' components, a top official says. Graham Webb, vice president for Pratt's commercial engine programs, said Pratt delivered to Brazilian air- frame builder Embraer S.A. last Decem- ber its PW1900G geared turbofan (GTF) engines, to power twin-engine planes ordered by Norway's Wideroe Airlines. Wideroe took delivery of the first air- craft April 5. Embraer's re- gional "E-Jets E2" are just the latest entry in a heated race by Airbus and other air- frame rivals from Canada, China, Japan and Rus- sia to satisfy air carriers' demand for quieter, more fuel-efficient jetliners, Webb said. Pratt's GTF propels versions of the Airbus A320neo and Bombardier's new C-series jetliner. "It's a whole new experience,'' Webb said of Embraer's three-model, E2 lineup. "It's quieter because of the geared turbofan engines. Passengers will note the comfort and relative spaciousness.'' In that airspace, Pratt competes directly against its main rival, CFM International, a General Electric Co. joint venture, to supply engines for these next-generation airliners. Of great significance to Pratt, Webb said, is that Embraer, for the first time, Scandinavian airline Wideroe took delivery recently of its first Embraer E-Jet E2 powered by a pair of Pratt & Whitney's geared turbofan engines. Graham Webb, Vice President, Commercial Engine Programs, Pratt & Whitney PHOTO | CONTRIBUTED

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