Private sector company CEOs saw their cash compensation increase 24% in fiscal 2013 compared to the previous year, to a total, including salary and bonuses, of $662,404, according to Chief Executive Research’s CEO & Senior Executive Compensation Report for Private Companies 2014-2015.
While most headlines on CEO pay focus on the total compensation packages of the CEOs of the largest public companies, the reality is that the vast majority of CEOs did not enjoy multi-million dollar pay packages in 2013.
Transportation companies led all other industries in CEO salary with a median base salary of $330,000 in 2013 , according to the latest CEO & Senior Executive Compensation Report for Private Companies, 2014-2015, by Chief Executive Group.
Within weeks, the Securities and Exchange Commission is slated to adopt its final guidelines on implementing a new rule that will require most public companies to disclose the ratio of the total annual compensation of their CEO with the median pay of “all” of a company’s employees.
With proxy season upon us, board compensation committees find themselves having to defend the exec pay choices they made over the past year, and prove that they’re really “paying for performance.” Too bad so many boards and companies do such a poor job of telling this comp story. What are some of the biggest boners CEOs commit when selling your exec pay plans -- and how do you avoid them?
The SEC has just proposed a rule that will require all public companies to report the ratio between the total pay of the CEO and the median pay of all other employees (excluding the CEO). Some of the unintended consequences --particularly for employment-- will be severe.
When CEOs exceed expectations or outpace rivals they tend to reap big rewards and when they fall short of financial hurdles they tend to lose out on pay and bonuses. According to a reports from the Wall Street Journal based on a study by Equilar more and more S&P 500 CEOs have been clearing or exceeding the goals set by directors. But is this the complete picture? Since when is public company compensation representative for all CEOs?
Two contrary developments reveal decidedly mixed developments in CEO compensation. In order to justify its pay to its top executives, Citibank is forever fiddling with the rivals it compares itself with. Conversely, in a clear sign that it is unhappy with the direction of the company the board of J.C. Penney cut the pay of its CEO Ron Johnson by almost 97 percent.
CEO.com assembled a list of 10 “big-time CEOs” who earn a base salary of just $1 a year. At a time when most CEOs are notorious for enormous pay packages (on average $10.5 million, according to Forbes), these 10 have opted for something less lofty. They do have one thing in common: all are entrepreneurial with all but one—Eddie Lampert—having founded a business. Yes, Virginia, founder-entrepreneurs do think differently than manager-CEOs.
CEO pay is an emotional issue with some, but it as a business performance issue it may be beside the point. Simply said, reducing chief executive pay, while a nice symbolic gesture, is not going to materially improve profitability. Symbolism won’t pay shareholder dividends, won’t drive revenue and won’t better the bottom line. One expert suggests that more attention and energy should go into investigating supplier “salary” rather than CEO remuneration.