March Madness: Executive Bonuses on the Rebound

March 21 2011 by Ceo Briefing - Mar. 22 2011


In another indication that the U.S. economy is recovering, executive compensation has made a comeback. From 2009 to 2010 CEO compensation for 50 major corporations increased from $83 million to $123.1 million according to The Wall Street Journal. The median increase in pay was 30.5% and was said to be a sign of increased profits.

Along with profits, boards use other indicators to determine how large of a bonus they will give to a CEO. These indicators are things like return on invested capital, cash flow, and return on equity; non-financial indicators are safety and leadership.

So who came out on top this year?

Roger Iger: Walt Disney Co. — $13.5 million

Jeffrey Immelt: General Electric Co. — $4 million

Howard Schultz: Starbucks — $3.5 million

Timothy Main: Jabil Circuit — $2.9

Executive Bonuses Bounce Back

Related: Big Bonuses Are Back: Is There Anything Wrong With That? and American Executives Get The Pay Raise They Deserve