Median CEO total cash compensation reached $325,000 in 2015, according to Chief Executive’s CEO and Senior Executive Compensation in Private Companies Report (www.chiefexecutive.net/compreport). This included a base salary of $250,000 and bonus of $75,000. While 2016 base salaries were flat, most CEOs expected bonuses to increase in 2016 to a median bonus of $90,000. Here’s how this plays out by company revenue and number of employees. —Steve Rose
CEO cash compensation varies widely by company, with the lower end coming in at just $200,000. But average cash compensation for all companies is more than 2.5 times that at a little over $525,000. Median cash compensation totaled $325,000, with a base of $250,000 and a bonus of $75,000, compared to just $20,000 in the 25th percentile and $160,000 in the 75th percentile.
Bonuses: More about revenue growth and profitability than base salary
Bonuses are highly tied to revenue growth and profitability in addition to company size, though there is a significant correlation among all three. This indicates that performance-based bonus incentives are effective at aligning a CEO’s performance with the company’s.
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