March Madness: Executive Bonuses on the Rebound
March brings the beginning of spring and this year CEOs are seeing more green than just blooming trees. Executive compensation is on the upswing. According to The Wall Street Journal, CEOs at 50 major companies have seen their bonuses jump by more than 30%. These 50 CEOs took home a total of $126.1 million in 2010, a number significantly higher than 2009′s $83 million. Who took home the most?
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