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Why Is Tilray’s Brendan Kennedy One of the Highest Paid CEOs?

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Tilray CEO’s salary

Bloomberg reported a list of the highest paid CEOs in 2018. Interestingly, Tilray’s (TLRY) CEO, Brendan Kennedy, was the second highest paid CEO with a total compensation package of $256 million after Tesla’s Elon Musk who was top on the list with a package of $513 million. What’s most surprising about that report is the comparison with CEOs of other companies that have been around for much longer than Tilray.

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Other CEO salaries

Third and fourth on the list were the CEOs of Walt Disney, Bob Iger, at $146 million and Apple’s Tim Cook with a package of $141 million. These companies have market capitalizations far greater than that of Tilray. For example, as of May 17, Tesla had a market capitalization of $31 billion, while Disney had a market capitalization of $243 billion. Apple, the heavyweight on the list, had a market capitalization of $896 billion.

In comparison, Tilray had a market capitalization of just about $4.4 billion. Tilray’s peers such as Canopy Growth (WEED) and Aurora Cannabis (ACB) had market capitalizations of $15 billion and $2.6 billion, respectively.

Some investors have been vocal against high CEO compensation, as they consider it to be value destroying for the companies. Warren Buffett has been against high salaries for CEOs, and recently representative Alexandria Ocasio-Cortez made her dissent clear against high CEO compensation.

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